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.
The property is “a first-class business park that offers state-of-the art features such as 30' minimum clearance, upgraded ESFR fire sprinkler systems and exceptional truck loading,” according to Peters. It has buildings ranging in size from 93,600 square feet to 216,320 square feet. The project totals 550,000 square feet and sits on 116 acres of land. Additionally, it is in a prime location, adjacent to Newhall Ranch, which will encompass more than 20,000 homes and 60,000 residents, and is a 30-minute commute from Santa Clarita Valley, San Fernando Valley and Antelope Valley.
While there is limited supply in the market, there is also little other industrial development because of the shortage of land. “The L.A. North Market in general has a significant land shortage, and so very little new development exists in the market,” adds Peters. “Currently, only three other buildings are under construction.”
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Kelsi Maree Borland
