Best Buy Co. Inc. has snagged nearly half a million square feet of industrial space at the Brickyard in Compton, the property’s leasing broker said Friday, bringing the 58-acre project to full occupancy.
The electronics retailer signed a 10-year lease for 479,310 square feet in space that was completed in January, said CBRE’s Bret Quinlan, who represented owner Clarion Partners.
“You’d normally need to go to the Inland Empire to find that quality of product,” Quinlan said. “Companies want that size and quality in the infill market, and there are very few opportunities.”
The Brickyard’s other piece, with about 522,000 square feet, was leased by United Parcel Service Inc. in September. The total lease values for both deals rank among the highest ever seen in L.A.’s industrial sector, Quinlan said.
He would not disclose terms of the Best Buy deal, but average monthly rents in the South Bay, where vacancy is less than 1 percent, are 82 cents a square foot, according to first quarter data from Jones Lang LaSalle. They jumped 5 cents from the prior quarter, making the South Bay the priciest industrial submarket in Los Angeles.
Best Buy plans to employ about 60 people at the site and move in by late summer, ahead of the holiday shopping rush, according to a press release from CBRE. The facility will serve as a distribution center for stores and shoppers in Southern California. Best Buy also distributes inventory from a facility in Chino, about 40 miles east of Compton.
The Brickyard, built on a former brick manufacturing site, is likely the biggest modern industrial site in the South Bay, a market coveted by e-commerce and shipping companies for its proximity to the ports and Los Angeles International Airport.
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Steve Belliti of Colliers International represented Best Buy, based in Richfield, Minn. Attorney Ray Friedman of Elkins Kalt Weintraub Reuben Gartside represented Clarion, based in New York. Its development partner is Trammell Crow Co., a Dallas-based subsidiary of CBRE.
Real estate reporter Daina Beth Solomon can be reached at email@example.com. Follow her on Twitter @dainabethcita for the latest in L.A. real estate news.