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Petco Renews 329,000-SF Industrial Lease

MIRA LOMA, CA-The pet supplies company remains at its distribution center in a $10-million deal. The deal is part of a tightening industrial market in Southern California, according to a report by GVA Daum.

By Daniel D. Williams | Updated on May 24, 2005

MIRA LOMA, CA-San Diego-based Petco Animal Supplies Inc. has agreed to renew its lease on a 329,831-sf distribution center at 4345 Parkhurst Street in a $10-million deal. Petco will continue to use the Mira Loma property as its distribution operations for the Western US retail market. In its new lease, Petco has lease permits to allow for an additional 100,000 sf.”One of the challenges in evaluating prospective locations for Petco was to find a space with the flexibility to permit future expansion if needed,” says Seth Dudley, executive vice president, director and branch manager with Studley, who is Petco’s national brokerage for corporate and distribution facility needs. In the deal, Dudley represented Petco. The landlord on the property is the Ohio State Teachers Retirement System. According to Dudley, Petco required contiguous space or more than 300,000 sf as well as parking for more than 200 employees. He says after researching the area for new space, ultimately, the decision was to remain in the current building while restructuring the deal, allowing Petco with significant tenant concessions.Activity remains strong throughout Southern California. In fact, according to a recent report by GVA Daum, the Southern California industrial sector remains the tightest in the nation. “The Inland Empire continues to achieve healthy absorption of space and declining vacancy levels despite the steady stream of new construction.” First quarter figures reveal that Inland Empire vacancy decreased from 6% to 5.6% during the last quarter for industrial product.

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