CBRE announced the lease renewals at three industrial buildings in Los Angeles County, totaling approximately $8 million.
CBRE’s Steve Young and John Privett represented the tenant, ALS West Coast Logistics, and the landlord, Prologis, represented themselves in the transaction.
The 139,857 square-foot Prologis Commerce Business Park is located at 5500 E. Slauson Avenue in Commerce. The two other properties are situated in Santa Fe Springs at 12202 Slauson Avenue Springs and 12425-12411 Los Nietos. The square footage at the three sites totals 320,000.
”In a market with less than 1% vacancy, it was imperative to our client that we begin working towards a long term solution in order to secure their footprint at their strategically located distribution centers” said Young. “By leveraging consolidation opportunities, we were able to achieve favorable terms without incurring significant moving costs allowing ALS to continue their tenancy in their existing buildings.”
Despite a lack of available properties, activity was the highest over the past 12 months, with construction in line with demand increases. Availability rates will remain relatively steady over the next year, only increasing by 30 basis points, mainly due to new product deliveries to the market, according to CBRE research. Rental rates are expected to climb an additional 6.3 percent by the first quarter of 2018.
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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.