LOS ANGELES– May 19, 2016 – CBRE Group, Inc. announced the completion of a 137,000-square foot lease in North Hills, CA, to package-delivery company UPS. The property is one of three buildings located within the North Hills Industrial Park.
CBRE’s Greg Geraci, Dave Harding, along with Billy Walk and Matt Dierckman represented the landlord, Geringer Capital. The tenant was represented by Mike Fowler of Jones Lang LaSalle.
The Class A industrial building at 16689 Schoenborn Street is located in the heart of the San Fernando Valley and has direct access to the 405 and 101 freeways. The building is located a mile from UPS’ main Van Nuys facility. The company will utilize this new space for major overflow delivery traffic during the company’s busiest months.
The growth of e-commerce and its effect on the overall supply chain is causing many logistics users to strategically locate their distribution points to help with same-and next-day delivery challenges, according to CBRE research.
“The need for speed is greater than ever” said Harding. “This is an ideal location for a tenant like UPS. This industrial park is near the major population centers in the area, involving not only the entire San Fernando Valley but all of West Los Angeles as well. This is an ideal location for today’s demands.”
First-quarter industrial rental rates rose in the Greater Los Angeles market, according to the latest CBRE research. Over the next 12 months, rents are expected to continue to rise, increasing by 6 percent by year-end 2016.
North Hills Industrial Park is a 19-acre industrial property, which also houses a FedEx shipping center, and distribution and storage facility for stone and tile manufacturer Walker Zanger.
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.
