Traditional Office Alive in West Covina

LOS ANGELES—While the Los Angeles has become known as a creative office stopping ground, the West Covina market is attracting traditional users. Office investor Sunny Hills Management Co. has acquired a 225,920-square-foot class-A office tower at 100 Barranca, and has hired NGKF to lead leasing efforts. The property is 50% occupied, and Drew Sanden, senior managing director at NGFK, says the firm is focusing on legal, financial services, banking, and import/export to fill the space. To find out more about the West Covina market, we sat down with Sanden for an exclusive interview.

GlobeSt.com: Give me a snapshot of the West Covina market and how it fits into the broader L.A. market? 

Drew Sanden: Eastern San Gabriel is one of the strongest markets in Southern California. Currently, the West Covina/Covina vacancy rate for office is headed into the single digits. This is a desirable market because of its central location. Employers can draw from the large employment base that is willing to commute from the Inland Empire and also the executive housing located along the 210 Corridor and North Orange County. This market is also benefiting from continued expansion from Pacific Rim companies.

GlobeSt.com: What types of tenants are driving this market?

Sanden: We're seeing a great deal of activity from service, financial services, legal, Pacific Rim companies, and medical tenants. The latter is due to several hospitals located in the Covina/West Covina submarket.

GlobeSt.com: Where is this office market headed? What is your outlook for the next year? 

Sanden: Eastern San Gabriel Valley market vacancy rates are falling sharply in Class A office properties. Rental rates have increased +$0.25 in the last three quarters and we're projecting continued growth of 5 to 6% in the next 12 months.
GlobeSt.com: Creative office is fueling a lot of growth in the market. Does the new ownership plan to adopt a creative office strategy in this property? If so, why?

Sanden: There will definitely be a creative office component in the common area. The Landlord is exploring plans for collaborative interior and exterior spaces but final plans are still in process. One of the benefits of this property is its extensive and under-utilized outdoor space. There are plans to use those spaces to incorporate more outdoor seating and extensive landscaping. This building was built in 1987. Today's tenants have expectations for the workplace offering and this building is ideal for an exciting and tenant driven renovation.

LOS ANGELES—While the Los Angeles has become known as a creative office stopping ground, the West Covina market is attracting traditional users. Office investor Sunny Hills Management Co. has acquired a 225,920-square-foot class-A office tower at 100 Barranca, and has hired NGKF to lead leasing efforts. The property is 50% occupied, and Drew Sanden, senior managing director at NGFK, says the firm is focusing on legal, financial services, banking, and import/export to fill the space. To find out more about the West Covina market, we sat down with Sanden for an exclusive interview.

GlobeSt.com: Give me a snapshot of the West Covina market and how it fits into the broader L.A. market? 

Drew Sanden: Eastern San Gabriel is one of the strongest markets in Southern California. Currently, the West Covina/Covina vacancy rate for office is headed into the single digits. This is a desirable market because of its central location. Employers can draw from the large employment base that is willing to commute from the Inland Empire and also the executive housing located along the 210 Corridor and North Orange County. This market is also benefiting from continued expansion from Pacific Rim companies.

GlobeSt.com: What types of tenants are driving this market?

Sanden: We're seeing a great deal of activity from service, financial services, legal, Pacific Rim companies, and medical tenants. The latter is due to several hospitals located in the Covina/West Covina submarket.

GlobeSt.com: Where is this office market headed? What is your outlook for the next year? 

Sanden: Eastern San Gabriel Valley market vacancy rates are falling sharply in Class A office properties. Rental rates have increased +$0.25 in the last three quarters and we're projecting continued growth of 5 to 6% in the next 12 months.
GlobeSt.com: Creative office is fueling a lot of growth in the market. Does the new ownership plan to adopt a creative office strategy in this property? If so, why?

Sanden: There will definitely be a creative office component in the common area. The Landlord is exploring plans for collaborative interior and exterior spaces but final plans are still in process. One of the benefits of this property is its extensive and under-utilized outdoor space. There are plans to use those spaces to incorporate more outdoor seating and extensive landscaping. This building was built in 1987. Today's tenants have expectations for the workplace offering and this building is ideal for an exciting and tenant driven renovation.