Pasadena is quickly becoming the newest tech hub in Los Angeles. In the last year, smaller and start-up tech companies have migrated to the market, where revitalized office space is a discount compared to other markets. Gigajot Technology is the latest company to migrate to the market, signing a 3,257-square-foot lease Gateway Metro Center. The lease deal is an example of the recent tech activity in the market, which is expected to pick-up momentum this year.

“Pasadena attracts tech companies because the area has been on the frontline of significant technological advances such as the tech firm Gigajot, which has developed quanta image sensors for high-speed single-photon detection for unlocking a new level of capture capabilities,” Kevin Carroll, an associate at Avison Young and the broker on the Gigajot deal, tells GlobeSt.com. “The tech industry is honed in on NASA's Jet Propulsion Laboratory in nearby La Canada Flintridge, the leading center for robotic exploration of the solar system, and research university California Institute of Technology in Pasadena. For a tech company to be situated in proximity to these two institutions is not only significant for recruiting, but also for being in the epicenter of an innovation hub.”

Lower office rents are the major draw for tech companies migrating to the market, especially as formerly discounted office markets like Hollywood and Downtown Los Angeles are now competitive with West L.A. Part of the current appeal to Pasadena is that leasing office space is less expensive in most cases compared to areas like Santa Monica,” says Carroll. “However, as the Pasadena market continues to attract talented tech firms, supply and demand will inevitably drive up rents.”