Landlords Ink Two Industrial Leases in South LA, Harbor City

Two industrial landlords have sealed two leases for a combined 204,000 square feet in South Los Angeles and Harbor City in a growth market.

Newport Beach-based Hager Pacific Properties closed a 108,000-square-foot distribution warehouse with packaging company California Supply at 13255 South Broadway, in South L.A., Commercial Observer reported.

The lease starts in July. Terms of the lease were not disclosed. Brokers Michael Collins and Dustin Hullinger of Daum Commercial Real Estate Services represented both parties.

At the same time, Los Angeles-based Rexford Industrial Realty signed a 96,000-square-foot warehouse renewal with Lunada Bay Tile at 1661 240th Street, in Harbor City.

The lease begins sometime this quarter. Terms of the lease were also not disclosed. Collins represented the landlord in the deal, while broker Jim D’Angelo of JD Investments represented the tenant.

“The industrial market in West and South Los Angeles continues to exhibit solid fundamentals,” Collins said in a statement. “Demand for space increased during this last quarter, resulting in lower vacancy rates.

“With little new supply coming online, the demand imbalance enabled us to negotiate renewals with favorable terms for our clients.”

Daum brokers also set up an 82,000-square-foot lease renewal for Tesla from Culver City-based Thompson Properties at 1100 Colorado Boulevard in Santa Monica. All three deals have a combined value of $30 million.

Demand for industrial properties in Santa Monica, West Los Angeles and South L.A. is on the rise, with the vacancy rate ticking down to 5 percent in the first quarter, according to Daum.

Developers have built or have been building fewer industrial buildings across the regions since early last year, with 360,000 square feet completed in the first quarter ending in March, and 1.6 million square feet under construction.

— Dana Bartholomew