JCQ Secures Tenant for South LA Warehouse
By Nick Trombola December 18, 2023 4:47 pm
reprints
The industrial market in Los Angeles is one of the largest in the nation, and despite slightly rising vacancy rates, demand for space remains high even as the year winds to a close.
Case in point: JQC Industrial finalized a 115,734-square-foot warehouse lease to fulfillment, distribution and transportation services company DCW in Rancho Dominguez last week. JQC leased the property at 3040 East Ana Street for $10.1 million for an undisclosed term.
Daum Commercial represented JCQ in the transaction, while The Klabin Company represented DCW.
“As companies consider the rising costs of transportation and labor, many are looking for property features that offer added value to mitigate these challenges,” Daum Executive Vice President Chuck Brill said in a statement.
The property is at a strategic crossroads of major freeways: State Route 91 to the north, Interstate 710 to the East, and I-405 to the south, all within a few blocks. The ports of Los Angeles and Long Beach are also about eight miles to the south.
“This property is a great example of what logistics companies are looking for — a variety of configurations to support growth and changing needs, existing amenities for employees, and a location that provides easy access to ports, freeways, and the Downtown Los Angeles area,” Daum Executive Vice President Casey Mungo said.
Although industrial vacancy rates in West and South Los Angeles increased by 17 basis points last quarter, net absorption turned positive for direct spaces, according to Daum market research. Third-quarter industrial sales volume in the area also increased by over 43 percent when compared to the second quarter of this year, per the report.
Not far from the Rancho Dominguez property, in Carson, the AIDS Healthcare Foundation in October purchased a 54,000-square-foot distribution warehouse from Shultz Properties for $20 million. Although Central L.A. has comparatively struggled to attract tenants, third-party logistics firm LAX Freight Delivery signed a lease for a 123,138-square-foot building in the city of Commerce, also in October.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
