A third-party logistics company has leased 155,000 square feet of warehouse space in Vernon in a deal valued at just under $20 million.
Tolead Logistics Ltd., based in China, signed a 10-year lease for the property at 5383 Alcoa Ave. The site is owned by the Gajiani family.
Realty Advisory Group’s John Repstad and Southland Commercial Real Estate’s Mark Repstad represented the landlord. Lee & Associates’ Michael Lee represented the tenant in the transaction.
Tolead Logistics Ltd. is expected to move in Oct. 1.
The landlord currently occupies the building, where it runs a T-shirt distribution, knitting and dying operations. The landlord will remove its machinery before Tolead Logistics Ltd. occupies the space.
The lease is part of a larger, 155,646-square-foot property.
The industrial market has been booming, largely because of the rise of ecommerce and fast shipping promises.
In the second quarter, 4.2 million square feet of industrial space sold or leased in the Central L.A. submarket, according to data from Jones Lang LaSalle Inc. That’s up from 3.2 million square feet the previous quarter and 1.4 million square feet the previous year.
Asking rents for industrial space in the submarket were $1.04 a square foot on a triple net basis, up 1 cent in a quarter and 4 cents in a year.
The vacancy rate for the area was 2.7%, down from 3.9% the previous quarter and 4.5% the previous year.
Other properties in Vernon have seen interest as well. In June, a roughly 33,000-square-foot industrial building in Vernon sold for $9.1 million. Alere Property Group purchased 33,000-square-foot industrial building at 4433 Pacific Blvd. from a private investor for $9.1 million.
Earlier this year Iris Basic USA purchased the Fruitland Business Park, a manufacturing property at 2701 to 2711 and 2761 Fruitland Ave. in Vernon, from Marquee Brands for $24.5 million.