The tenant is L.A. Records Management Inc. Its new, 10-year lease for 108,288 sf at 15624 Roxford St. in Sylmar is valued at $8 million.
L.A. Records' newly constructed building is one of three structures inside World Oil Corp.'s Gateway Business Park. L.A. Records plans to move in next spring and will sublet the 50,000 sf of space it currently occupies in Sun Valley.
Chuck Carmichael of NAI Capital Commercial's Encino office represented L.A. Records in the transaction and also will seek a tenant to sublease the Sun Valley space. World Oil Corp. was represented by Barbara Emmons of CB Richard Ellis and Chris Sullivan of Daum Commercial.
Broker Carmichael says his client chose the new Sylmar location, in part, because of the building's "high-cube" storage capabilities. "Even the lowest part of the ceiling in the new building is 28-feet high," Carmichael tells GlobeSt.com. "By being able to stack boxes or merchandise really high, you don't need as much actual square footage as you would in a building with a lower ceiling."
Carmichael adds that while industrial leasing activity in Sylmar and the rest of the San Fernando Valley has slowed in lockstep with the economy, the valley's diversified tenant base has kept the local market from suffering as much as other Southland areas that rely on only a handful of different industries to generate demand. A recent report by CB Richard Ellis pegs the valley's third-quarter industrial vacancy rate at 6.9%, among the lowest in all of Southern California
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