Industrial Market At a Glance
Inventory:
185 million square feet
Under Construction:
2.4 million square feet
Asking Rents:
56 cents
Industrial space in the San Gabriel Valley remained in high demand last quarter thanks in part to Southern California’s booming import-export businesses, but the valley is lacking in new large-sized inventory to fill the need.
“We see companies, especially of the very large sizes, that cannot find available inventory and are moving further east where larger big box distribution space is being built,” said Jim Center, senior vice president, industrial, Grubb & Ellis Co.
That easterly trend helped to increase vacancies slightly. The January to March period ended with the vacancy rate at 1.8 percent, up from 1.2 percent during the fourth quarter of 2006. Rental rates were down a penny to $0.56.
The good news for the market came with an uptick in sales and leasing activity, demonstrating the market is far from being at a stand still. And with nearly 2.4 million square feet of industrial space set to come on line, that activity will most likely continue.
At Majestic Realty Co.’s 400-acre Grand Crossing development in City of Industry, two spec buildings are currently under construction: a 125,000-square-foot structure and another building that will total a whopping 925,000 square feet. Both are slated for completion in September.
“Certainly any new inventory will help, but as long as demand is such and there’s a lack of available space, it’s still going to be a very tight market,” Center said.
Last quarter’s office market showed little movement with Class A and B rents holding steady at $2.54 and $2.18 respectively, and vacancies remaining in the mid-7-percent range.
Lizbeth Scordo
MAIN EVENTS
-Construction began on 12 industrial buildings in Pomona that will total 292,296 square feet and will make up the new Mission-71 Business Park. The buildings will range in size from 16,000 to 42,000 square feet and will be available for lease starting in the third quarter of 2007.
-Jamison Properties Inc. bought the Whittier Center at 15111 and 15141 Whittier Blvd. from BRCP Realty Services II LLC for $29 million, or approximately $202 per square foot. A four-story and five-story office building make up the property with tenants including Fremont Investment & Loan and First Team Real Estate and Bank of Whittier.
-A California-based investment group acquired the three-story, 48,732-square-foot City Gate office building in West Covina for $9.4 million, or about $193 per square foot, from a private investor.
-Freight forwarding and logistics services firm the Topocean Group signed a five-year lease for 100,000 square feet of office, warehouse, and distribution space at 2727 Workman Mill Road in City of Industry. Majestic Realty Co. is the owner and developer of the property.
-Majestic also had two tenants commit to lease renewals. High-end kitchen appliance company Dacor signed a lease for an additional five years at 415 S. Seventh Ave. in City of Industry. Dacor has occupied the 100,000-square-foot distribution center since 2001. Aftermarket brake systems and auto parts manufacturer Centric Parts renewed its lease of 200,000 square feet of warehouse and distribution space 14528 E. Bonelli St. in City of Industry for another five years.
