Pilot Air Freight has signed a five-year lease at 1700 Walnut Parkway, an industrial property in Compton. Pilot Air is a subsidiary of Maersk Co., a global transportation and logistics provider. Pilot Air has committed to 48,004 square feet in a multi-tenant industrial building that totals 96,106 square feet.
“They’re operating as a third-party logistics provider for Bob’s Furniture,” said Frank Schulz, who, with Nick Buss and Todd N. Taugner of the Klabin Co., represented warehouse owner IDI Logistics in the roughly five-year lease transaction valued at almost $7 million.
Pilot was represented by John Gorczyca of Jones Lang LaSalle Inc.
The site will serve as a last-mile facility for the furniture deliveries.
Despite the need for industrial properties, Schulz observed that there’s been something of a slowdown in the asset class.
“Demand is still stable,” Schulz said. “It’s certainly not the same feverish demand we saw six months ago.”
However, vacancy in industrial across Los Angeles County is still below 1%.
“There’s all of this concern about markets and interest rates but the reality is that the rates are holding,” Schulz said.
“Rates should be reduced or there should be concessions, but we’re not seeing that because of the sheer lack of alternatives for people.” Inventory remains low, which continues to drive up leasing prices, according to Schulz.
“Velocity and tenant interest has slowed,” he said. “It’s too soon to know if that’s economic or the holidays.”
