Dedeaux Breaks Ground on LA Industrial Campus

By IvyLee Rosario

Echelon rendering

Dedeaux Properties broke ground on its $38 million Echelon Business Park in L.A.’s City of Industry submarket.

Located at 801-821 Echelon Court, the 246,543-square-foot development will comprise seven free-standing buildings ranging from 27,438 to 43,166 square feet. The project will include a two-story office space, ample dock-height loading, and configurations for loading shipping containers. Construction is slated for completion in the first quarter of 2018. 

“It takes planning and execution to bring many medium-sized warehouse units to market, and it is more expensive on a per-square-foot basis than developing larger product, but the demand is certainly there to justify the effort,” added Ben Horning, director of development for Dedeaux Properties, in prepared remarks. “I just hope we can find more land to build more projects like Echelon Business Park.”

Smaller Industrial Space Needed

The bulk of businesses in Southern California are small- and medium-sized, and are in need of warehouse, factory or R&D space. Many startups require space under 50,000 square feet, however, in 2015, there were 430,948 business enterprises in Los Angeles county, but only 5,390 had more than 100 employees, according to a report by the California Employee Development Department. 

“There is a hole in the warehouse market, no product between 20,000 and 40,000 square feet,” said Dennis Sandoval, broker with DAUM Commercial Real Estate, who is representing Dedeaux Properties on the development, in prepared remarks. “Our market research indicates vacancy rates of less than 1 percent for 15,000- to 40,000-square-foot buildings in the San Gabriel Valley, where Echelon Business Park is being developed.”

Much of the existing smaller warehouse space in Southern California is older stock, lacking the amenities of minimum 24-foot-high ceilings, ample truck turning radius, adequate electric power, dock-height loading, or sprinklering, according to Sandoval.

Image courtesy of Dedeaux Properties