(Save the date: RealShare Industrial 2012 comes to The Banker's Club, Miami, December 5 - 6.)
LOS ANGELES-First Industrial Realty Trust Inc. has begun development on two new state-of-the-art industrial buildings totaling 789,300 square feet here and in the City of Chino, CA. The buildings are projected to cost $74 million to construct.
The new developments follow First Industrial’s recent leasing win at its 692,000-square-foot First Inland Logistics Center in the Inland Empire and other local lease signings. First Bandini Logistics Center, which is estimated to cost $54 million to construct, will be a 489,000-square-foot distribution center built on 21 acres at 5555 Bandini Blvd., five miles southeast of Downtown L.A. and directly off the I-710 freeway. The facility is adjacent to the BNSF and Union-Pacific intermodal sites and will provide efficient access to the ports of Los Angeles and Long Beach as well as the Los Angeles International Airport.
The First Bandini building will feature 32-ft. clear height, 71 loading docks, drive-in doors on each side, ample trailer and car parking, ESFR sprinklers and wide truck courts for efficient access. Construction is expected to begin in late October and will be completed to California’s leading CalGreen code standards. The building is being marketed toward tenants with expansion or consolidation needs from the nearby South Bay or Los Angeles areas.
The second building, First Chino Logistics Center, will be a 300,300-square-foot facility currently under construction. It is being built on 16 acres in the City of Chino in San Bernardino County, a supply-constrained industrial submarket in the West Inland Empire. The building will feature 32-ft. clear height, trailer and car parking, ESFR sprinklers, 45 dock doors, two drive-in doors and a wide truck court including double-stacked trailer stalls.
The Chino site, estimated to cost $20 million to construct, is located within access of six major freeways and is close to the Chino and Ontario airports. Like First Bandini, construction will be also be completed to CalGreen code standards on this building.
“First Bandini will be a rare, state-of-the-art distribution solution in an established infill market, while First Chino has a unique competitive position at the west-most point of the Inland Empire,” said Johannson Yap, First Industrial’s chief investment officer, in a prepared statement.
Ryan McClean, First Industrial’s senior regional director, tells GlobeSt.com that the industrial markets have heated up, and there’s been a flight to quality among users in Southern California. “The market is tight as a whole, and there hasn’t been a lot of overbuilding, so vacancies have been absorbed and this has created a demand for bigger and state-of-the-art space. Bigger is better, and the newer, nicer, more functional product is driving demand in infill markets as well as the Inland Empire.”
While there has been some rehabbing going on, “There always seems to be a user who can use a building as is and will keep the price higher than what the developer would pay to buy and rehab it.” McClean adds. “We are seeing a lot of migration and consolidation out to the Inland Empire, causing huge absorption numbers out there. There are few available class-A, functional properties that are 100,000 square feet and larger, so it’s forced this migration, but the users reap the savings from lower rent and consolidation.”
As GlobeSt.com previously reported, in August Cushman & Wakefield won an exclusive assignment to market a 708,000-square-foot speculative industrial facility that First Industrial is building off I-83 in southeastern Pennsylvania. The developer says the $34 million project in York will be available for Summer 2013 occupancy.
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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.
