Industrial landlords near the ports of Los Angeles and Long Beach are beginning to upgrade their facilities to meet the increasingly heavy demands of e-commerce. In Compton, PGIM Real Estate just completed a four-month, multimillion renovation on its Dominguez Hills Industrial Center, which sits on nearly 5 1/2 acres. The biggest transformation to the 34-year-old property was scraping away 10,000 square feet of offices to expand the truck yard - crucial to attract logistics companies.
“It was functionally obsolete,” said Steve Bohannon, a senior director at Cushman & Wakefield who is marketing the building for lease. “It didn’t have the yard depth that would accommodate truck maneuverability.”
The South Bay’s industrial market hit a record low vacancy of 1 percent in the third quarter, according to Cushman & Wakefield. And with that kind of market tightening, Bohannon expects more landlords to take on similar renovations.
“With the ages of old buildings getting older, it’s what the market yearns for and what landlords need to do to attract tenants,” he said.
Real estate reporter Daina Beth Solomon can be reached at firstname.lastname@example.org. Follow her on Twitter @dainabethcita for the latest in L.A. real estate news.
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