Newmark announced it has negotiated a 211,715-square-foot industrial lease at 1757 Tapo Canyon Road in Simi Valley, CA. The brand new Class A industrial facility, situated on 10.69 acres, is set to open in August 2020.
Newmark’s Senior Managing Director Patrick DuRoss, SIOR, Executive Managing Director John DeGrinis, SIOR and Senior Managing Director Jeff Abraham, SIOR represented the owner and developer, Xebec Realty Partners. The Newmark team has advised and represented Xebec on development projects across the region for over five years; this lease marks the eighth transaction Newmark has executed on behalf of Xebec.
The property features 135-foot truck courts, secured fencing, 27 dock high positions, three ground-level loading doors, 32-foot minimum clear heights, an ESFR sprinkler system and abundant parking with immediate access to the 118Freeway. The city of Simi Valley is centrally located and provides easy access to the infill areas of Ventura County, San Fernando Valley and greater Los Angeles.
“It’s an interesting concept that I don’t know many have contemplated in years past: replacing an office building with an industrial building,” DuRoss explained. “Two years ago, there was an existing 185,000-square-foot office building that had been vacant for several years, so we decided to approach the site from a different angle. In this case, it made a lot of sense because of the underlying industrial zoning, the condition of the existing office building and the supply/demand nature of industrial versus office in this particular location.”
DeGrinis added, “This transaction is particularly rewarding because we collectively thought ‘outside the box’ and came up with a solution that will result in significant job creation in the city of Simi Valley, particularly during this unprecedented time that has brought on so much uncertainty.”
“This was an exciting opportunity for us to repurpose this lot and deliver a high-quality facility in a region demanding new industrial space,” said Gretchen Kendrick, EVP and COO of Xebec Realty. “We anticipate this building and new lease will not only provide a foundation for economic expansion in the region but will also support the growth of the global supply chain as the demand for e-commerce continues.”
The Southern California industrial market continues to perform well amid market turmoil due to many notable drivers–a large consumer base, retailers expediting their last-mile delivery capabilities, increased demand for third-party logistics providers “3PLs” and fortune-ranked occupiers who are increasing domestic inventory capacities, according to Newmark’s Q2 2020 Research. Los Angeles’ five submarkets–South Bay, Central, Mid-Cities, LA East and LA North–account for 54 percent of Southern California’s industrial inventory. The LA North region, in particular, makes up 12 percent of that inventory, with 230 million square feet of industrial feet and a 2.2 percent vacancy rate, according to Newmark Research’s Q2 2020 report.
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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