At the San Gabriel Valley Economic Partnership’s annual Economic Outlook Forum, LAEDC chief economist, Nancy Sidhu, noted that real estate was still struggling despite a recovering economy. Residential, commercial and office space were hurting as rents are being slashed to try to entice occupancy. Manufacturing, though stopped bleeding, show no signs of recovering either in 2010.
In 2010, new residential units fell 5% in 2010 and building permits, which peaked in 2003 at 3,125, was only at 216. 2011 is expected to show some improvements as building permits are projected at 625, still way below the 2003 numbers. The reason for these distressed numbers, noted Sidhu, was the still high levels of foreclosed homes still on the market, depressing new growth. In terms of media home prices, Arcadia led the way in the Valley at $713,500 and Pomona was the lowest at $200,000.
Commercial, office space and manufacturing real estate did see growth in 2010, though still below peak numbers. Industry vacancy fell 3.6% in the fourth quarter of 2010. Office space vacancy, meanwhile, was at 13%, lower than the county’s which was at 17%.
*Publisher Steven Ly is on the Board of Directors for the San Gabriel Valley Economic Partnership