McKinley Packaging Signs Lease in Santa Fe Springs

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McKinley Packaging has signed a lease for a 102,516-square-foot industrial building in Santa Fe Springs.

A subsidiary of Bio Pappel, McKinley Packaging makes sustainable paper and packaging products. Lease terms for the property at 13930-13950 Mica St. were not provided.

Colliers International Group Inc.’s Christopher Sheehan, Mike Foley and Connor Reeves represented the landlord, Prologis Inc., and the tenant in the lease.

“The landlord secured a tenant with an exceptionally strong credit profile. The facility provides valuable support to McKinley’s main plant next door and will immediately improve production and logistics. Centrally located facilities for packaging companies in this market are highly sought-after. The transaction was ideal for both parties,” Sheehan said in a statement.

McKinley Packaging will use the site to expand its distribution in California and the surrounding area. It also has facilities in Georgia, Indiana, Texas and Baja California, Mexico.

It’s been a busy time for the industrial market in Los Angeles County.

During the first quarter of the year 15.2 million square feet of industrial space sold or leased, up from 13 million square feet one year prior, according to data from Jones Lang LaSalle Inc.

During the same quarter, the asking rent for industrial products was 99 cents a square foot on a triple net basis, up from 96 cents the quarter before and 93 cents the year before, according to JLL data.

And in the last five years, more than 414 million square feet of industrial warehouse space has been leased in greater L.A., Orange County and the Inland Empire, according to data from CBRE Group Inc.

Experts said the rise of ecommerce and demand for fast deliveries have increased the need for industrial space in L.A., which has a large population and ports.

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