In the larger of the two deals, an HVAC contractor has taken 36,000 sf in the 4770 Ruffner St. facility. The new tenant, Southern California Air Conditioning, has inked a $1.6-million, five-year lease. Chris Pascale of CB Richard Ellis acted on behalf of the tenant. The lessor, Gould Industries, was represented by Mickey Morera of Burnham Real Estate Services ONCOR International.

Separately, a wholesale produce company has signed a seven-year, $557,508 lease for industrial space in the South Bay Distribution Center, which is located at 684 Anita St. The tenant, Imperial Produce Inc., has joined Premier Produce, The Produce Exchange, T.R. Produce and Pacific Coast Freight at the complex. Imperial Produce Inc. and the lessor, SDBC LLC, were both represented by Tim Mills of Burnham Real Estate Services.

These transactions come as activity is beginning to pick up in the San Diego County industrial market. According to a recent report by Burnham, the industrial vacancy rate stands at 7.4%, which is the lowest level reported here since 1997. With little excess of supply in this sector and virtually no threat of overbuilding, vacancy rates are expected to drop over the next year.