Newmark Knight Frank (“NKF”) announces it has arranged a 118,664-square-foot industrial lease at Telegraph Business Center in Pico Rivera, CA.
NKF’s Vice Chairman John McMillan, Senior Managing Director Jeff Sanita, Managing Director Danny Williams and Associate Director Greg Stumm represented the landlord, Alere Property Group LLC, in the transaction. Mohr Partners represented the tenant.
“We were drafting leases for one of the largest companies in the U.S. when the lockdown occurred in mid-March, and unfortunately Covid-19 impacted their business plans,” said McMillan. “Thankfully by mid-summer we had several new tenants interested in the building, and we were able to come to terms with Alere’s preferred tenant over the past month.”
Sanita added, “It was a fast-moving transaction. The activity in the market overall has really picked up. All three potential tenants wanted to take occupancy quickly, and we were one of the few empty Class A buildings of this size available in all of infill Los Angeles.”
Built in 2019, the property is located at 7875 Telegraph Road and features 36-foot clear height, ESFR sprinkler system, 21 dock high positions, a secured yard, two drive-in bays and ample parking. The building is situated less than a mile from the 5 Freeway and in proximity to major airports, the commuter rail and the Ports of Long Beach and Los Angeles.
“The tenant had multiple smaller facilities located throughout Southern California,” said Michael V. Del Santo, Senior Vice President, Portfolio Management at Alere Property Group LLC. “Our project was centrally located to most of them, and the Class A features and large yard were a big draw for them.”
Los Angeles County industrial vacancy has remained under 3 percent for 17-straight years as modern product remains in short supply, according to NKF Research. Q3 sales volume was highly pronounced and well beyond the market’s 10-year average. Average asking rent ended the third quarter of 2020 at $0.89 per square foot, an increase of 2.3% from $0.87 in the third quarter of 2019. Today’s rent is at a record high.
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 18,800 professionals operate from approximately 500 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.