By DANIEL TAUB
With space tight for factories and distribution centers throughout much of Los Angeles County, the Antelope and Santa Clarita valleys had a hot first quarter for industrial development.
In the Antelope Valley, ground was broken on several new industrial projects in the first three months of 1998, including a 15,600-square-foot adhesive-tape manufacturing plant, a Rite Aid Corp. distribution center and a Frito Lay distribution center. All of those projects are being built in Lancaster.
"We have virtually no industrial space available in Lancaster, so we're anxiously awaiting some (speculative) industrial developers to discover us," said Lancaster City Manager Jim Gilley, adding that the city currently has no vacant industrial spaces available with more than 10,000 square feet.
Meanwhile, in Valencia, construction continued on the Valencia Commerce Center industrial park. In the first quarter, 1.2 million square feet of the center, which has the potential to contain a total of 12 million square feet when built out, was under construction. Another 1.8 million square feet of the project already has been built, and it had a vacancy rate of less than 1 percent in the first quarter, said Marlee Lauffer, spokeswoman for Newhall Land and Farming Co., which is developing the industrial park.
Lauffer said she could not disclose who is in talks to move into the new section of Valencia Commerce Center, because some are in escrow and some are still in negotiations. "There are some companies from the San Fernando Valley that have expressed interest," she said, adding that all of the prospective tenants are light manufacturers.
Meanwhile, Valencia Industrial Center, a 9 million-square-foot industrial park near the Valencia Commerce Center, had a vacancy rate of 1.5 percent during the first quarter, according to Grubb & Ellis Co. That center has the potential for an additional 1 million square feet of space, but no new construction was started there during the first quarter, Lauffer said.
The entire Santa Clarita Valley had an industrial vacancy rate of 3.3 percent in the first quarter. Although that was higher than the vacancy rate in the fourth quarter of 1994 1.1 percent it was lower than the industrial vacancy rate of 4.6 percent for the first quarter of 1997.
"If you look at Santa Clarita Valley as a whole at 3.3 percent, that's very low," said Jim Linn, vice president in Grubb & Ellis' industrial services group. "Traditionally, not just in this market, but in industrial markets nationwide, 5 percent to 10 percent vacancy is a healthy vacancy rate."
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