Trucking, storage and distribution company Great Central Transport has signed two leases totaling 344,000 square feet of industrial space in Compton, Calif. The largest of the two deals included a 200,000-square-foot industrial building at 601-615 W. Walnut St., which is owned by the San Francisco-based warehousing giant Prologis. The second deal was for a roughly 144,000-square-foot property at 921 Artesia Blvd. that’s owned by JPMorgan Asset Management.
In both negotiations, the tenant was represented by Klabin Company’s Frank Schulz and Nick Buss. John Schumacher of CBRE negotiated on behalf of JPMorgan, while Klabin’s David Prior and Todd Taugner represented Prologis.
“These two lease transactions were crucial to Great Central’s operations as it rapidly expands its services and client base,” Buss said. “The demand and level of interest in these buildings was extremely high and we used our strong relationships and market knowledge to secure them for our client in a timely manner with terms that work for them.”
The two warehouse buildings are located just a few blocks apart in a vital industrial southern California corridor that provides access to freeways and the ports of Los Angeles and Long Beach. The Artesia Boulevard building stands on a 7.5-acre plot and previously served as a DHL distribution facility. Great Central Transport signed a 61-month lease for the concrete tilt-up industrial building, which also includes approximately 15,000 square feet of office space, 14 dock-high positions, one ground-level door and 24’ clear height. The property also comes with a 400-spot parking area.
The Walnut Street warehouse rests on more than nine acres and was recently upgraded with 20 pit-style load levelers and perimeter fencing around its massive yard. The building also features 32 dock-high positions, two ground-level doors and 22’ clear height.
The demand for warehousing and distribution facilities across California has been growing for several years now. However, COVID-19 lockdowns — coupled with the growth of e-commerce — have kicked it into high gear as vacancy rates approach 1% in some markets. Meanwhile, spec construction for industrial buildings larger than 100,000 square feet is struggling to meet demand, with new properties leased in just a few weeks.
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Last modified: October 12, 2022
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About the Author / Diana Sabau
With years of intense research on the U.S. commercial real estate market at Yardi Matrix, Diana is currently putting her experience to use by writing for several Yardi blogs. She covers CRE investment, job market trends and tech. Her work has been featured in the New York Times, GlobeSt, The Real Deal, NAIOP, MSN and Bisnow.