Aerospace distribution company FDH Aerospace has signed a nearly 115,000-square-foot lease in Commerce.
The lease is for the entirety of the Commerce Logistics Center at 5200 Sheila St., a property owned by Link Logistics.
The owner was represented by Newmark Group Inc.’s John McMillan, Jeff Sanita, Danny Williams and Greg Stumm.
“We are happy to welcome FDH Aerospace to Commerce Logistics Center,” Sanita said in a statement. “Our team is pleased to have completed the successful lease-up of this state-of-the-art building in a market with significant supply constraints for industrial space.”
The Commerce Logistics Center was built this year and has a fenced and secured yard, nearly 11,000 square feet of office space, 36-foot clearance heights, 17 dock-high doors and parking for 116 cars and 17 trailers.
The property is located near the Port of Long Beach and the Port of Los Angeles, and 14 million residents live within a 50-mile radius of the center.So far this year, five of the top 10 move-ins in the industrial market in L.A. were of newly built properties that were preleased, according to Newmark research.
The leases totaled roughly 932,000 square feet, or roughly 67% of the quarter’s net absorption, the brokerage reported.
The industrial market is incredibly tight throughout L.A. County. In the first quarter of the year the vacancy rate was a mere 0.6%, down from 1.3% the previous quarter and 2.9% the previous year, according to data from Jones Lang LaSalle Inc.
During that quarter, 11.6 million square feet of industrial product sold or leased, down from 14.3 million square feet the previous quarter and 16.7 million square feet the previous year, JLL found. Meanwhile, 5 million square feet of industrial product was under construction. The lack of vacancy, experts agree, makes it incredibly competitive to lease new space.
