The 1-million square-foot development will provide tenants with competitive edge for same-day logistics
Los Angeles – April 29, 2016 – The Brickyard South Bay, a 1 million square-foot, two-building industrial development owned by Clarion Partners on behalf of a separately managed account, will double as logistical slam-dunk for any tenant seeking a strategic West Coast location and as economic engine to Compton, the neighborhood it sits in.
Clarion is transforming the 58-acre site, a former brick manufacturing facility, into a state-of-the art industrial facility. The project will cater to the ever-increasing need for same-day logistics through its proximity to the second-largest population center in the U.S. Bret Quinlan, Executive Vice President and Co-Leader of the CBRE Global Port Logistics Group, Executive Vice President John Schumacher, David Stromath and Dean Haney are leading the marketing. The project is expected to be completed by August 2016.
“The need for space by e-commerce companies is ever-increasing,” said Clarion’s Ryan Collins, who oversees Clarion’s industrial portfolio in Southern California. “These companies need same-day delivery fulfillment and reverse logistics capabilities close to major population centers. This demand has made available space in metro areas such as Los Angeles almost impossible to get.”
The site is just south of downtown L.A., east of Los Angeles International Airport and north of the nation’s two biggest ports. Due to its unique position of being almost exactly the geographical center of Los Angeles County, Compton is commonly referred to as the “Hub City.”
“The importance of meeting customers’ demands for speedy delivery is greater than ever,” said Quinlan. “It is putting much higher demands on the functionality of industrial real estate and is driving occupiers closer to population centers.”
The Greater Los Angeles area industrial market has seen record low availability levels while demand is ever-increasing, likely pushing rents up 6 percent by year-end, according to first-quarter research by CBRE Econometric Advisors. The region is going to see some relief from supply constraints as more than 3.8 million square feet are currently under construction, with the South Bay and San Gabriel Valley accounting for the majority of the total.
The two Class-A, LEED Gold certified buildings, which each will be about 500,000 square feet, are expected to be completed in the second half of this year. The structures sit on1701 N. Central Avenue and 1430 N. McKinley Avenue and will feature a total of 199 dock doors and will have as many as 577 auto parking spaces. The buildings’ 36 foot ceiling height will provide as much as 20 percent more storage capacity when compared with conventional 32-foot-tall industrial buildings.
“Compton is in the middle of everywhere,” said CBRE’s Quinlan, whose team is focusing on tenants who need proximity to large population centers. “You can touch about 10 million people in under an hour. It is like no other location. Tenants will be able to slash travel time and trucking costs significantly.”
The Brickyard, which is expected to create hundreds of jobs, will double as economic driver and buoy the transformation that has been taking place in Compton.
“It is exciting to be an economic driver and to contribute to this kind of neighborhood transformation,” said Schumacher. “
About Clarion Partners
Clarion Partners, an SEC registered investment adviser and FINRA member firm, has been a leading U.S. real estate investment manager for 32 years. Headquartered in New York, the firm has offices in major markets throughout the U.S., in São Paulo, Brazil and London, England, as well as a presence in Mexico. With more than $40 billion in total assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to its more than 200 domestic and international institutional investors. The Firm’s industrial footprint is comprised of more than 116 million square feet across 43 markets across the U.S., Mexico and Brazil.
More information about the firm is available at www.clarionpartners.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
