LOS ANGELES—AEW Capital Management and Sheridan Ebbert Development has tilted the walls on Valencia Gateway V, a three building office and industrial development in Valencia, CA. The property is part of the largest master planned industrial development in Los Angeles County. The developers will deliver the project in the first quarter of next year.

Due to scarcity of land, large industrial developments in Los Angeles County are rare, but demand is at all time highs. Even in markets like Valencia, there is a land shortage for these developments. “The Valencia and Santa Clarita Valley area has had a significant shortage of entitled and improved land available for development,” Craig Peters, a broker at CBRE that is representing the developers in the project. “This land shortage has severely limited new developments of any size in the area over the past decade. Industrial demand is at an all-time high for companies seeking locations in the Valencia and Santa Clarita Valley market. At the same time, supply is at record lows with less than a 2 percent vacancy rate. Accordingly, Valencia Gateway V will provide much needed space to companies looking to expand or relocate within the LA North market , which includes San Fernando Valley and Santa Clarita Valley.”

The project has three buildings at 105,047 square feet, 88,752 square feet and 60,923 square feet, all state-of-the-art with dock high loading, 28 feet minimum clearance, upgraded ESFR fire sprinklers and 480/277-volt power. The leasing team is already getting ample attention from potential users months before completion. “To date, we have seen strong interest from both companies already located in the Valencia and Santa Clarita Valley area as well as from companies considering relocating from the San Fernando Valley,” says Peters. “These new state-of-the-art Class A buildings allow companies to operate more efficiently and increase productivity due to their functional attributes. These include 28-foot minimum clear heights, ESFR fire sprinkler systems and exceptional truck turning areas. Further, the buildings are attracting companies due to their corporate image and key location at the main entrance to the Valencia Commerce Center from Highway 126.”

MCA Gateway V purchased the three lots to assembled the project earlier this year. While there is limited land, development in Valencia is easier than Los Angeles, attracting more and more developers. Compared with other areas in Southern California, development in Valencia and the Santa Clarita Valley is fairly straightforward as both the County of Los Angeles and the City of Santa Clarita are proactive to promote job growth and attract new companies to the area,” says Peters. “Our partnership with the City, County and the Santa Clarita Valley Economic Development Corporation has been critical in streamlining the process to get companies in and operating.”