Pair of Freight Servicers Lease a Combined 77K SF in LA County
The leases have a total value of over $5.5 million.
By Nick Trombola May 16, 2024 4:59 pm
reprints
A pair of freight servicers were thinking of leasing some space in California’s Inland Empire region, but they didn’t find it palatable.
Nova Container Freight Station and Best Services International Freight have instead signed for a combined 76,919 square feet at Summa Properties’ Watson Industrial Center in Carson, Calif., bringing the nearly 164,000-square-foot building to 100 percent leased.
The Klabin Company’s David Prior represented Summa in both transactions at 1111 Watson Center Road, while Newmark (NMRK)’s Danny Williams represented Nova and Klabin’s Yasushi Shiromi and Mike Ouellette represented Best Services.
“It’s no secret that the highly competitive industrial market has cooled in the last year, so we are extremely pleased to execute these lease transactions in a positive manner for all involved,” Prior said in a statement.
Nova is taking 51,288 square feet in a 42-month deal worth more than $3.1 million, according to Klabin. Best Services will take 25,631 square feet in a 61-month lease valued at $2.43 million. Watson Industrial Center is a few blocks from California’s Interstate 405, about 8.7 miles to the Port of Long Beach and 11.2 miles to the Port of Los Angeles.
The sizable leasing deals come amid a general market correction in L.A.’s industrial market. L.A. County’s industrial vacancy rate rose 180 basis points in the first quarter of this year, to 4.8 percent. Average asking rents also began to slip backward, decreasing by 1.8 percent compared to the final quarter of last year, according to a market report from NAI Capital.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
