Newmark announced it has facilitated the signing of a 232,229-square-foot lease at Prologis’ Vernon Business Center, a brand-new, Class A industrial project in Vernon, California. This transaction marks the largest industrial lease completed in the central region submarket of Los Angeles year-to-date in 2020. 
Newmark’s Vice Chairman John McMillan, Senior Managing Director Jeff Sanita, Managing Director Danny Williams and Associate Director Greg Stumm represented the landlord, Prologis. The tenant, U.S. Elogistic Services, was represented by an outside firm. The two-building project was recently brought to market earlier this year and is now fully leased. The Newmark team leased the adjacent 113,952-square-foot building of the project, located at 2929 54th Street, in February to XPO Last Mile.
Located at the Northwest corner of Boyle and 54th Street, the project boasts of state-of-the-art industrial features including 36’ clearance, ESFR sprinklers, concrete yards, trailer storage and abundant dock high loading. Vernon Business Center’s central location allows for direct access to over 15 million people within a 50-mile radius, as well as access to six major freeways within five miles, and is only minutes to Downtown Los Angeles.
“We sold this site to Prologis back in 2010, and even then, they knew this would be a fantastic last-mile destination for an e-commerce user,“ said McMillan. “Prologis’ vision was yet again spot on”.
Sanita added, “Vernon is the bullseye for Los Angeles County, and has consistently held one of the lowest vacancy rates, despite the vast majority of the buildings in the city being more than 30 years old, which really speaks to its central location and the city’s “business friendly” attitude. Brand new Class A industrial buildings are extremely rare here, and Prologis develops to the highest standards so the interest level in the Vernon Business Center was high from day one.”
Amid market turmoil, Los Angeles is perhaps the most resilient industrial market in the country, according to Newmark’s 2Q20 Los Angeles Industrial Report. The City of Vernon, in particular, has the third largest inventory of industrial space, totaling nearly 62 million square feet, following behind Downtown LA and Commerce. The Vernon industrial vacancy was 1.7 percent by mid-2020, lower than the overall average of Central Los Angeles’ vacancy rate, according to Newmark Research.
Newmark (“Newmark”), 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, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’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.
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