The property is located in Valencia, a submarket of Los Angeles.

LOS ANGELES—International Airport Centers has broken ground on the IACC Commerce Center, a huge 1.3 million-square-foot industrial site in Valencia. The project brings much needed industrial supply to a very tight market. The dearth of industrial supply is in fact so severe that the project has already received interest from tenants and may result in build-to-suit components.

“Valencia is one of the most active and strongest industrial markets in LA County with nearly 25 million square feet of industrial space and a 1.5% vacancy rate,” Craig Peters, EVP at CBRE, tells GlobeSt.com. “Demand from companies is at an all-time high, particularly in our primary industry clusters such as aerospace and defense, bio medical and medical devise, entertainment, advanced manufacturing and consumer product distribution. IAC Commerce Center provides much needed supply to meet the current demand.”

Peters is leading the leasing efforts on the property, along with his CBRE colleague Doug Sonderegger. The team has already received interest from potential tenants on the property, and while the first phase is already planned, subsequent phases may result in build-to-suits because of the significant demand. “We are seeing strong interest in both the buildings under construction in Phase 1 as well as in build-to-suit opportunities as large as 560,000 square feet in our future phases,” says Peters.