LONG BEACH, CA—City Logistics and Transport has signed a 104,000-square-foot industrial lease in Long Beach for its headquarters location. The company is relocating its operations from its current location in Rancho Dominguez, CA, and will take occupancy in the new building on March 1.

Located at 2888 E. El Presidio St. in Long Beach, the 104,000-square-foot facility has 8,193 square feet of office space to house 150 of the company's employees, with the remaining square footage used as warehouse space. The property has a concrete tilt-up structure and features 42 dock high positions, rail service, a large fenced yard and on site parking with 120 stalls. The property is also ideally located for the company, which makes daily trips to the garment district in Downtown Los Angeles and the Long Beach and Los Angeles Ports.

This building's physical characteristics are very unique—the large yard and high door count—and afford City Logistics the ability to consolidate goods more efficiently than more traditional assets,” Frank Schulz, VP at the Klabin Co., tells GlobeSt.com. Schulz represented the tenant in the lease transaction, along with company partners Todd Taugner and David Prior, while CBRE brokers John Schumacher and Brett Quinlan represented the landlord, Invesco Realty Advisors. The company signed a 64-month lease at the property, a value of approximately $3.4 million.

“It is becoming more and more difficult to find these types of buildings,” says Schulz. “Given the extremely low vacancy rates and supply constraints that we have in the market, these buildings are becoming more and more valuable—even though this building is a much older vintage building.” The Long Beach market is a haven for industrial users because of its close proximity to Downtown Los Angeles and the Ports of Long Beach and Los Angeles, which according to a recent report from Lee & Associates, handles 40% of the nations cargo activity. That same report shows that demand for these property types spiked in 2014, with the highest absorption rates since 2007. For this reason, the industrial market is facing some serious supply issues throughout the Los Angeles area, which also includes Vernon, Commerce and the mid-counties in addition to Long Beach.