Glendale, CA Multifamily Submarket Report
Submarket Overview
Glendale, CA, is a dynamic submarket within California’s commercial real estate landscape. Known for its strong economy, diverse population, and strategic location within Los Angeles County, Glendale offers attractive opportunities for investors and businesses alike. Multifamily investors are drawn to Glendale because of its impressive school district, high employment rate, and growing population.
Submarket Performance
Over the past few quarters, rental activity has been relatively subdued in the Glendale submarket. The vacancy rate, currently at 4.1%, has risen from a recent low of 2.8%, and 2023 witnessed the weakest demand from renters in 20 years. However, despite these trends, the vacancy rate in the submarket remains relatively favorable compared to long-term historical averages, which stood at 3.7% over the past decade. Over the last 12 months, there has been a 0.7% increase in average asking rents, contrasting with the 0.2% movement observed across the Los Angeles market. There has been limited apartment construction in the submarket for a few years. The 310 units currently being built will increase the total number of units in the submarket by 0.9% once all projects are finished. The largest development, The Glendale Campus, comprises 228 units and is set to open in the near future.
The 12-month sales volume stands at $152 million, with the average market price per unit currently at $390,000.
Glendale By The Numbers | Past 12 Months | Source: CoStar Group
- Vacancy Rate: 4.1%
- Rent Growth: 0.7%
- Delivered Units: 42
- Absorbed Units: -194
- Sales Volume: $152M
Burbank, CA Multifamily Submarket Report
Submarket Overview
Situated in Los Angeles County, Burbank is renowned for its strong ties to the entertainment industry, hosting major studios like Warner Bros. Entertainment and Walt Disney Studios. This connection to media and entertainment has a significant impact on Burbank’s commercial real estate dynamics.
Submarket Performance
As of Q2 2024, the multifamily vacancy rate in Burbank stands at 4.9%. Average asking rents in Burbank have trended downwards since reaching a peak in March 2023, experiencing a decrease of -0.7% over the past 12 months. Currently, rents in Burbank average $2,450 per month, which is approximately 10% higher than market-wide averages. Despite modest apartment development activity in the last 10 years, with only 540 units added, the submarket is one of the most active in Greater Los Angeles relative to its size. With 660 units currently under construction, comprising 4.2% of existing units, Burbank’s multifamily market is dynamic. The largest development underway is LaTerra Select Burbank, consisting of 573 units. This mixed-use development will also feature a 307-room hotel, with 69 units designated as deed-restricted affordable housing, set to open soon.
In terms of sales activity, around $36.7 million worth of multifamily properties were sold in Q1 2024, and $94 million in the last 12 months. Market pricing has seen a decline of about 15-20% since its peak in 2022, with cap rates increasing by 75-100 basis points.
Burbank By The Numbers | Past 12 Months | Source: CoStar Group
- Vacancy Rate: 4.9%
- Rent Growth: -0.7%
- Delivered Units: 0
- Absorbed Units: 45
- Sales Volume: $94M
Pasadena, CA Multifamily Submarket Report
Submarket Overview
Situated northeast of downtown Los Angeles, Pasadena is known for its historic charm, cultural attractions, and thriving business environment. The submarket is home to institutions like the California Institute of Technology (Caltech) and the Jet Propulsion Laboratory (JPL), fostering a culture of innovation and research.
Submarket Performance
Pasadena has experienced a decline in occupancies over the past few quarters, with the vacancy rate currently at 4.1%. While the pace of rent growth has slowed down from the high levels seen in 2021 and early 2022, there was a 2.8% year-over-year increase in the past 12 months, outperforming the market-wide movement of 0.2%. The outlook suggests similar rent growth for the remainder of the year. The current construction pipeline consists of 270 units, accounting for 1.0% of existing units, which is below the market-wide percentage of 2.2%.
In terms of sales activity, Q1 2024 saw five multifamily properties transact, totaling $17.1 million. The last 12 months dales volume stands at $114 million, with average market pricing at $400,000 per unit.
Pasadena By The Numbers | Past 12 Months | Source: CoStar Group
- Vacancy Rate: 4.1%
- Rent Growth: 2.8%
- Delivered Units: 292
- Absorbed Units: 56
- Sales Volume: $114M
