2024 Community Real Estate Outlook in Alhambra

As 2024 unfolds, Alhambra’s real estate market is at a crossroads. Insights from local brokers shed light on the current trends and prospects. Among them are Pauline Mejia and Robert Ip, two prominent figures engaged in the real estate scenes of Alhambra and the SGV. They recently spoke with the Land Use and Economic Development Committee about what to expect in 2024.

Despite the continued presence of aging, empty structures throughout the city, the industrial sector remains remarkably resilient, boasting a steady influx of buyers. While some may view certain buildings as obsolete, the market continues to display vitality, with robust activity and many leasing opportunities available, with more likely to come.

The Alhambra office real estate market presents a more nuanced picture, characterized by what Ip says some have even described as a "bloodbath" of subleases. Entrepreneurship is rising, evidenced by a surge in new business owners opting for shorter lease terms. Incentives such as free rent are becoming commonplace, reflecting the tenant-centric nature of the market.

The retail sector, a cornerstone of Alhambra's economic landscape, is undergoing notable shifts. With the minimum wage now $20, sit-down restaurants are streamlining operations to minimize labor costs. Meanwhile, local street-level retail is witnessing a proliferation of businesses like boba shops and tattoo studios, attracted by the lower startup costs.

While Alhambra boasts a well-leased commercial landscape dominated by larger tenants, there's growing curiosity about diversifying family-oriented activities. With new venues like SkyZone Alhambra, the potential for entertainment venues like escape rooms, laser tag arenas, and fitness centers looms on the horizon, with weekends presenting prime opportunities for monetization. However, financing such ventures poses initial challenges, which can make them difficult to get off the ground.

As Alhambra navigates its current real estate market, Mejia and Ip remain optimistic about the city's enduring appeal and potential for growth. With a keen eye on evolving consumer preferences and market dynamics, Alhambra stands poised to embrace new opportunities and cement its status as a vibrant community hub in the SGV.