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Pasadena Cap Rates Are Heading Up

Multifamily sales activity has declined slightly in the Pasadena market, but experts say interest remains strong and cap rates are expected to increase next year.

By Kelsi Maree Borland | Updated on November 20, 2017

Multifamily sales activity has declined slightly in the Pasadena market, but Mark Ventre, SVP at Stepp Commercial, says interest remains strong and cap rates are expected to increase next year. He points to healthy fundamentals, like improving local employment and increased population, as drivers of the strong investor demand. We sat down with Ventre for an exclusive interview to get an inside look at the market.

GlobeSt.com: How does the multifamily market in Pasadena compare to the other Tri-Cities markets in terms of tenant demand, rental rates, etc.?

Mark Ventre: The Tri-Cities performed remarkably well this year. In fact, the metrics are surprisingly similar for all three cities in 2017, with an average price per square foot of $371 for Burbank, $377 for Glendale and $376 for Pasadena. Their non-rent control status, improving local employment, increase in population, and high barriers to entry have allowed these markets to flourish in the past several years.

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