Pasadena has seen a 28-percent increase in collected sales tax in the period between January and March 2022 in comparison to the same period last year, a key indicator of surging retail sales.
This was among other findings which are set to be reported Tuesday in an Economic Development Update before the City Council’s Economic Development and Technology (EDTech) Committee. The committee meets at 5:30 p.m. Tuesday. Meetings continue to be via videoconference and are open to the Pasadena community.
David Klug, Economic Development Director, said all business type categories in Pasadena, except for New Motor Dealers/Auto Lease, showed strong growth from the prior year.
He added some of the upward change is due to inflation, especially in the Service Stations category, where cost is driving the increase rather than consumption.
“Historically, the first quarter is the smallest quarter of the year from a taxable retail spending perspective since it follows the holidays,” a memorandum by David Klug, Economic Development Director, said. “The year-over-year comparison should continue to be taken in context similar to the last few quarterly updates, since the January to March 2021 period was still a time where some businesses were closed entirely or operating at a reduced capacity due to COVID-19.”
The Economic Development Team also reported some slowing has been seen in taxes generated from online retailers, some of whom have shifted back to local brick-and-mortar locations.
Klug’s team will also provide a Quarterly Office Update to the EDTech Committee, which includes data on office property sales and leases as well as improvements being done on existing property to open them up for more investment opportunities.
A preliminary report showed two H.N. and Frances C. Berger Foundation properties, at 50 N. Hill Avenue and 1300 E. Green Street, were sold during the reporting period. The office building at 50 N. Hill Ave. was sold for $9.01 million, or $381 per square feet. The building at 1300 E. Green Street sold for $7 million, or $738.31 per square foot.
A retail investment sale also closed escrow in May when a 28,421 SF retail property at 64-68 W. Colorado Blvd., which includes Tiffany and Co., Crate and Barrel and Foot Locker, sold for $52.25 million, or $1,838.43 per square feet, to Blatteis and Schnur, Inc.
Graymark Capital also completed the renovation of the two-building, 219,000-square foot Pasadena Technology Center in Northeast Pasadena. The brokers are hoping to attract life science tenants.
Atlas Capital Group also completed its major renovation of 101 S. Marengo Ave. within the reporting period. The 310,000 square-foot office building was originally purchased in April 2020 for $72 million from Somar Associates LLC. Klug said staff has been working with Atlas Capital in searching for tenants.
On leasing activities in Pasadena, the Economic Development Office said Innova Medical Group, which manufactures and distributes rapid antigen and antibody test kits for COVID-19 disease detection, is currently under construction at 800 E. Colorado Blvd. for an additional 24,000 square feet of leasing space.
Lagerlof LLC, a Pasadena law firm, is adding 18,000 square feet at 155 N Lake Ave., Narrative Ads recently signed a lease for 22,000 square feet at the Pasadena Technology Center, and Reliance Steel and Aluminum just signed a lease for 16,000 at Pasadena Towers relocating from DTLA.
Iconic Hawaiian apparel manufacturer and retailer Reyn Spooner signed a lease for 3,700 square feet at 117 E. Colorado Blvd. and will use the space as their corporate headquarters, design studio and retail store.
Another significant lease update is Premier Workspaces, which provides flexible workspaces to growing businesses, moving into 16,000 square feet of office space at 301 N. Lake Ave.
The Economic Development team has also determined there are approximately 79 vacancies out of 988 storefronts in Pasadena, which need to be promoted and filled. The team will report details at Tuesday’s meeting.
Members of the community may access the meeting through http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 and through www.pasadenamedia.org.
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