September 1, 2021 9:00 AM
Newmark Knight Frank (“Newmark”) announces it has negotiated a 433,865-square-foot lease at new industrial project, Huntington Gateway. Cambro Manufacturing will occupy Building 2, which will be delivered in Q3 2022. The total lease consideration was in excess of $65 million.
Newmark Senior Managing Directors Wes Hunnicutt and Matt Moore represented the tenant in the transaction. Cambro, which has operated in the city of Huntington Beach for 70 years, currently has two existing manufacturing buildings in Huntington Beach and is consolidating its warehouse operations from the City of Industry to Huntington Gateway.
“This is a smart move for Cambro. Huntington Gateway is a one-of-a-kind project in Orange County and a perfect fit for Cambro and its growth plans,” said Hunnicutt. “This will ultimately save significant dollars on interfacility transport costs, and the building features will allow for maximum efficiency.”
The new Cambro building will be within Phase II of Huntington Gateway, developed by Newport Beach-based Sares Regis Group. Phase II, consisting of 56 total acres, includes four additional buildings ranging in size from 109,892 square feet to 233,706 square feet, to be completed in late 2022.
Executive Managing Directors Jeff Read and Scott Read and Managing Director Greg Osborne of Newmark are the listing agents on the project and represented Sares Regis in the lease transaction.
Modern space in Orange County is highly scarce and desirable, which often leads to bidding wars among prospective tenants. In most cases, contract rents are being determined on a deal-by-day basis, according to Newmark Research’s latest quarterly report. E-commerce sales growth, government stimulus to consumers and global supply chain disruptions are all favoring demand for local space. Orange County’s vacancy tightened to 2.3% after quarterly net absorption gains of 784,376 square feet. Huntington Beach has the lowest industrial vacancy rate among West Orange County submarkets at 0.9%.
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Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Our comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, growing startups to leading companies. In 2020, Newmark generated revenues in excess of $1.9 billion. Newmark, together with London-based partner Knight Frank and independently owned licensees, operates globally from approximately 490 offices with 19,300 professionals. To learn more, visit nmrk.com or follow @newmark.
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