Metal Supplier Signs Expansion Lease in LA
Seven-year deal valued over $46 million
By Greg Cornfield September 22, 2023 4:25 pm
reprints
A.M. Castle & Company, a metal logistics and supply chain company, is set to expand its operations in the nation’s busiest region for supply chain real estate.
The firm signed a lease renewal and is expanding from a portion of a building to the entire 282,000-square-foot at 14001-14003 Orange Avenue in Paramount, Calif., a small city near Compton and Long Beach. The new seven-year lease is valued at over $46 million.
The Klabin Company’s Warren, Kimberly and Travis Noack, Frank Schulz and Tyler Rollema represented the owner and landlord, Ed Drees and Drees Wood Products. Fisher & Co. Real Estate Services represented the tenant.
Thanks to its large population and its proximity to the busiest trading ports in the hemisphere, Southern California continues to lead the U.S. in industrial rent growth, with annual lease rates rising 12.6 percent in Greater Los Angeles in July, according to the most recent market report from CommercialEdge. The Western U.S. is the most expensive industrial area for investors and tenants alike, with asking rents at $13.06 per square foot per year in Greater L.A.
Greater L.A. also saw more than $1.8 billion in industrial asset sales in the first half of 2023, which is second most in the nation behind the Inland Empire, and also the second most expensive sales price per square foot at $335, per CommercialEdge.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
