R&D; Finds San Gabriel Haven : Eastern Valley Draws More High-Tech Companies
Although commercial office vacancy rates average more than 30% in the San Gabriel Valley, the market for research and development sites and facilities in the eastern end of the valley is already strong and is expected to grow steadily.
The information on the vacancy rates for the second quarter of this year is from Grubb & Ellis Commercial Brokerage Services, while the optimistic R&D; outlook is from arch rival Coldwell Banker Commercial Real Estate Services.
The Grubb & Ellis survey of 39 buildings showed a vacancy factor of 32%, down from 34.5% for the same period in 1984. The latest figures cover 3,313,000 square feet, of which 1,046,000 square feet is available in Covina, West Covina, Monterey Park, El Monte, City of Industry, Pomona and Diamond Bar, according to Jeffrey T. Carey, vice president and district manager of the firm’s Los Angeles office.
In 1984, the existing base amounted to 2.6 million square feet, with 891,097 square feet vacant, he added.
“Paced by the rapid growth of the Pomona and Diamond Bar areas along the Orange (57) Freeway, space in the San Gabriel Valley under construction amounts to nearly 500,000 square feet of office and R&D; space, all of it coming on line later this year,” Carey said.
He added that the second quarter figure is an even greater improvement over the 35.7% vacancy factor recorded for the first three months of 1985.
Gil Bates of Coldwell Banker’s City of Industry office said that the region’s traditional industrial base is being augmented by more than 1,584,000 square feet of high-tech development already planned for San Dimas, Pomona, Diamond Bar, Glendora and Irwindale.
The largest of these projects is the University Corporate Center in Pomona, being developed by the Macklin Cos. of Newport Beach. When it is completed, the center will offer more than 1.2 million square feet of corporate and high-tech space.
In addition, three major developments offer land sales or build-to-suit possibilities: Crossroads in the City of Industry, with 110 acres and its own ramp on the Pomona (60) Freeway; the World Vision development with more than 80 acres in the upscale college community of Claremont; and Arrow Grand with 18 acres in Covina. Firms that have already purchased land in Arrow Grand include Sensortronics, Select-a-Switch, Telstar and Ameritec, Bates said.
Land prices in the $4.50-$5 per square foot range compare very favorably with rates of $8-$20 in the South Bay, $8.50-$10.50 in Irvine and a hefty $20 for finished land on the Westside of Los Angeles, he added.
But lower land values alone are not forcing the emergence of an R&D; market in the San Gabriel Valley; rather it is a function of a change in technology, products and society, he said.
The influence of Pasadena’s Cal Tech and its graduates, many of whom have stayed in the area to join or start high-tech businesses is important,” Bates said. “Land appreciation in Pasadena has sent many companies eastward along the Foothill (210) Freeway corridor. Prominent among them in recent years are “information generation” companies, such as Home Savings of America with a 300,000-square-foot headquarters in Irwindale; the Federal Home Loan Bank facility in the City of Industry and the Bell & Howell operations in Baldwin Park.
Important factors that make the San Gabriel Valley attractive to developers include freeway proximity, a good surrounding neighborhood, a progressive and cooperative attitude toward development on the part of the local government, amenities such as banks and restaurants and land prices in the $4.50-$5 per square foot range, Bates said.
“Most of the cities in the East San Gabriel Valley offer all of these advantages,” he said. While offices and R&D; space is important, the role of industry is vital to the San Gabriel Valley, according to Brent Enright, also from the Coldwell Banker City of Industry office.
One major problem is the scarcity of major sites, 20 acres or larger, in the valley. Only 25 sites meeting this description can be identified, with most of them in the southern half of the San Gabriel Valley, Enright said.
The Glendora/Irwindale area is rapidly emerging as a major development location in the valley. Two major developments in Glendora include the $10-million Glendora Commerce Center and the 85,000-square-foot headquarters of Interface Technology.
Two of the seven buildings in the first phase of the Glendora Commerce Center at Allen Avenue and the Foothill (210) Freeway, have been sold, according to a spokeswoman for Coldwell Banker, the marketing agent. The project is being developed by R & P Enterprises, Glendora, and is in the Glendora Redevelopment District. The architect is Don R. Murphy & Associates of Monrovia and the contractor is Keller Construction Co. Inc., El Monte.
The first phase, totaling 87,400 square feet, will be completed by the end of the year, with construction following on the second and third phases next year, according to Donald L. Riggins of Coldwell Banker.
The $6-million interface Technology project, designed by McClellan Cruz Baylord & Associates, Pasadena, and developed by LaCagnina, Stubblefield Inc. for Interface Technology, presents a high-tech appearance on Foothill Boulevard, one of the most heavily traveled streets in Glendora.
The look was achieved by placing the office functions in the front or Foothill Boulevard side and the manufacturing function in the rear, according to designer Al Diaz of the McClellan firm.
Because a residential tract abuts the Interface property, the design team took great care to minimize the scale of the building so that it blends with neighboring homes without obstructing views of the San Gabriel Mountains, Diaz said. Myers Construction was the contractor.
The massive Chevron development on the site of the former Ontario Motor Speedway in Ontario is attracting adjacent development, according to Bryan Moody, Bill Toth and Gary Womack of the Ontario office of Grubb & Ellis.
An investment group, Maxroad Co., has purchased 10 acres of commercial land on the south side of B Street, fronting the San Bernardino (10) Freeway. The $2-million transaction was handled by Moody.
Adjacent to the Maxroad site is a 32-acre parcel purchased for $4.6 million by Rohan California Investment Inc. for development of Ontario’s first automobile dealership center. Toth represented both Rohan and the seller, Southern California Federal Savings & Loan Assn. in the transaction.
Preliminary discussions are under way with several auto dealers regarding a move to the area, according to Womack. The property at the intersection of the San Bernardino and Devore (15) freeways will be divided into separate auto dealerships ranging between 2.9 and 7.5 acres, Toth said.
“Many of the big auto manufacturers encourage their dealers to open new facilities on freeway frontage,” he added.
Rohan is the Santa Monica-based subsidiary of the Rohan Group of Dublin, Ireland, one of the leading real estate developers in Ireland and Great Britain.
