CARSON, CA—Industrial land in the South Bay could be more valuable as-is due to the limited supply of outdoor storage space in the area. In an earlier story, GlobeSt.com reported that Prologis purchased a 10-acre land site from Hunter Woodworks for $14.2 million. In this update to that story, Lee & Associates' Long Beach-Los Angeles office principal David Bales now reveals that the major industrial developer plans to leave the site as-is.

“The irony is that there were a lot of developers who are looking at this site to build a multi-tenant or a single-tenant building, but we are finding that there is a scarcity of land, especially in the South Bay, where you can do any kind of outside storage,” Bales tells GlobeSt.com. “From an investment perspective, the return on the land without a facility is just as rewarding to an investment group as what they would get if they put the a development on the site. The consensus for Prologis is that we can get a very nice return with them just for land.”

The only structure on the site is a 5,000-squre-foot office building and maintenance area. Bales received some steep competition for the site. “There are not many 10-acre sites out there,” he says. “We had offers on the property from people who both wanted to develop on it and people who wanted it for the land.”