Logistics Firm Signs 184K-SF Lease in Los Angeles County
By Greg Cornfield April 8, 2022 7:55 pm
reprints
Supply chain congestion is driving continued demand for storage and logistics space near the ports of Los Angeles and Long Beach.
Third-party logistics firm DX Supply Chain has signed an expansion deal for 183,958 square feet in one of the largest leases of the first quarter this year in L.A. County, according to Newmark (NMRK)’s latest industrial report.
DX provides a range of fulfillment services, supply chain support and warehouse management systems. Records show Beverly Hills-based Crown Associates Realty owns the property at 5600-5640 Knott Avenue in the city of Buena Park. It’s located off Interstate 5 near the southern border of Los Angeles County, north of Anaheim.
The industrial vacancy rate in L.A. County dropped slightly from 1 percent to 0.9 percent from the last quarter of 2021 to the first of 2022, according to Newmark’s report. L.A.’s vacancy rate is the second lowest in the nation, behind the Inland Empire’s 0.6 percent average. In Buena Park, all 14.5 million square feet of industrial space is leased.
L.A. County’s average asking rent is $1.19 per square foot per month, up almost 28 percent compared to $0.93 per square foot one year ago. That updated rate would put the value of DX Supply’s renewal at over $2.6 million per year.
Newmark says swift rent growth persists and will not abate any time soon.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
