Rexford Industrial Realty Adds 111K SF for Lief Labs in LA County
Long-term lease for 111,260 square feet is adjacent to other Lief Labs sites
By Greg Cornfield July 13, 2021 7:44 pm
reprints
Los Angeles County needs a steady diet of warehouse expansion to keep up with hungry manufacturers and e-commerce tenants.
Lief Labs is expanding its space with premier landlord Rexford Industrial Realty, signing a long-term lease for 111,260 square feet in the northern part of the county, at an under-construction property adjacent to other Rexford properties occupied by Lief Labs. The dietary supplements manufacturer will take the entire building at 29025-29055 Avenue Paine in Valencia, Calif., which is expected to be complete by December.
CBRE (CBRE) announced the lease and represented Rexford. Ashland Pacific Management represented Lief Labs.
In 2018, Lief Labs took over the adjacent 112,000 square-foot building located at 28903 Avenue Paine, which is also owned by Rexford. Lief will remain in that space, and the adjacent facilities will function as its primary operational hub.
Strong tenant demand for distribution space drove the Greater L.A. industrial market to its third consecutive quarter with more than 10 million square feet of gross activity, and larger warehouses have become increasingly more difficult to find, according to CBRE’s research. CBRE’s Craig Peters said industrial vacancy rates are quickly approaching 0 percent for larger buildings in the north region of L.A., at a time when demand is reaching “all-time highs.”
Last summer, Amazon (AMZN) signed a 155,700-square-foot lease for a regional distribution center at the IAC Commerce Center in the city of Valencia in the Santa Clarita Valley, and a joint venture of Dedeaux Properties and Stockbridge Capital Group acquired a distribution center with more than 214,400 square feet at the 1,100-acre Valencia Industrial Center.
Rexford, meanwhile, is one of the biggest and most active landlords in Southern California. After finishing 2020 on another buying spree, the firm acquired The Box Yard for $94 million in L.A.’s Arts District. And, in April, Quixote Studios signed a lease for nearly 124,000 square feet with Rexford in the San Fernando Valley.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
