(Mark Your Calendars: RealShare REAL ESTATE 2012, March 22nd in Los Angeles).
VERNON, CA-Mola Inc. has inked a new five-year lease with owner Karney Management for a building located at 2957 E. 46th St. The lease covers 129,444 square feet of industrial space, including 25,000 square feet of office space, in the single-tenant building.
Jones Lang LaSalle and CB Richard Ellis represented Karney in the deal, while Mola, a full-service manufacturer of garment products, was represented by Lee & Associates. Paul Sablock, managing director of JLL, tells GlobeSt.com that Karney has a large portfolio of buildings including others in this submarket, all with very little vacancy.
He adds that Karney’s success is due in part to the owner’s diligence in renovating a building as soon as it becomes vacant. “Many owners wait to see what a tenant may want done to the building prior to doing much of anything to [it]. It makes my job easier when most of the typical work gets done ASAP. The property shows better, and the tenant gets to move in much quicker.”
The Los Angeles Central industrial submarket, which includes Vernon, outperformed most areas in the county in 2011, with a year-end vacancy of 3.5% and 1.2 million square feet of positive net absorption, according to Sablock. “Many of the users that make up this submarket are successful entrepreneurs,” he tells GlobeSt.com. “This submarket is in the middle of very attractive residential neighborhoods such as Beverly Hills, Pasadena, Palos Verdes and the beach communities. Plus, this submarket is very diverse business-wise.”
As GlobeSt.com previously reported, 2012 promises to see steady growth in the L.A. Metro area’s commercial real estate market, “but don’t expect a ‘big pop.’” At a recent 9th Annual “Market Review & Forecast” event presented by the AIR Commercial Real Estate Assoc. in Los Angeles, Grant Harris, senior vice president, Lee & Associates-LA North/Ventura Inc., the Ventura County region saw activity pick up dramatically in the second half of last year. “It was the most consistent activity I’ve experienced in several years,” he said. Harris forecast steady, slow recovery for 2012 with industrial lease rates and sales prices beginning to stabilize sparked by “a resurgence of high tech companies.” He also said vacancy rates for industrial buildings will continue to fall due to production scarcity.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
