By Nicholas Ziegler, News Editor
With the signing of a 270,764-square-foot lease in Carson, Calif., Prologis Inc. has now fully leased the Prologis South Bay Distribution Center to 3PL Global L.L.C., a third-party logistics provider. The building, which is LEED Silver certified, is located near the Ports of Los Angeles and Long Beach.
“The Ports of Los Angeles and Long Beach are the two busiest in the entire country and with (Los Angeles International Airport) so close, this South Bay location is in high demand, particularly by customers seeking rarely available large, high quality facilities such as this one,” Kim Snyder, president of Prologis’ Southwest region, said.
The L.A. industrial market is expected to remain somewhat flat for the year, according to a fourth-quarter 2011 report by services firm Cushman & Wakefield Inc. “Although net absorption was positive in 2011, there was a slight slowdown in market activity,” the report noted. However, even with the slowing, the Greater Los Angeles industrial sector is still leading the nation in leasing volume, driven in large part by the “diverse economic drivers contributing to local demand for industrial space.”
3PL Global offers warehousing, distribution and logistics services. The company, formerly known as Terry Bowman Group of Logistics, is headquartered in Irvine, Calif., but plans to move its headquarters to the new state-of-the-art Prologis building.
According to Real Capital Analytics, investment activity in the L.A. industrial sector continued to gain momentum through 2011. Volume increased by 41.2 percent from their 2010 totals, reaching $1.6 billion in 2011. With so few quality products coming online, investors are bidding more aggressively for prime assets. Consequently, the region’s average sale price climbed to $100.15 per square foot last year, a significant increase from the $71.15 recorded in 2010.