Tesla’s new offices in Santa Monica.

Tesla’s new offices in Santa Monica.

Electric vehicle giant Tesla Inc. has signed a five-year lease for an industrial warehouse and office property in Santa Monica in a deal valued at $12 million.
The property, at 1100 Colorado Ave., spans 121,200 square feet and includes an 82,000-square-foot building.

Parr Investment Co. is the landlord of the building, which features an 18-foot clearance height, warehouse restrooms and a fenced-in yard.

Daum Commercial Real Estate Services’ Michael Collins and David Freitag represented the lessor in the transaction.

“Our client, a private owner with whom DAUM has a longstanding relationship, had a rare commercial property available for lease in the tight Santa Monica submarket,” Collins said in a statement. “The building is situated on a corner adjacent to heavily trafficked Interstate 10. We were able to attract significant interest and several offers, ultimately securing a long-term lease to a top automotive business.”

Collins said the property owner also owns a 50,000-square-foot property next door that is fully leased to Mercedes-Benz. That made the Colorado Avenue location appealing to Palo Alto-based Tesla, which also leases offices in Marina del Rey.  
Other companies with office presence near the Colorado Avenue property include Amazon.com Inc., HBO and Universal Music Group.

“This lease transaction was a true win-win for both parties,” Freitag said in a statement. “The lessee will be situated in a highly visible location near several prominent creative, entertainment, distribution and service companies, as well as retail amenities, while our client benefits from a quality, established tenant.”

The industrial market has been in high demand in L.A. During the fourth quarter, 15.2 million square feet of industrial space sold or leased, up from 13.7 million the previous quarter, according to data from Jones Lang LaSalle Inc.

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