Goodman Signs 572 KSF Tenant in Metro Los Angeles
- Feb 09, 2021
Noble House has leased 572,240 square feet of logistics space at Goodman Logistics Center El Monte, a two-building, 1.2 million-square-foot logistics park in El Monte, Calif. The national manufacturer and distributor of furniture will occupy the entire Building One of the Class A property, bringing the campus to full occupancy, a Goodman representative told Commercial Property Executive.
According to the company, the new tenant is currently moving into the space, which will be fully operational soon. Noble House COO Joshua Dannett said, in a prepared statement, that the lease will bring the firm’s operational capacity to more than 2 million square feet across the U.S.
Voit Senior Vice President Peter Castleton represented Noble House in the deal, while CBRE Senior Vice Presidents Ben Seybold, Sean Ward, Lynne Knox and Jason Chao assisted Goodman.
A recent CommercialEdge report shows the the Los Angeles industrial market had a 4.5 percent vacancy rate at the end of 2020, one of the lowest in the country, with the Inland Empire the tightest at 2.8 percent.
The El Monte property, up close
Goodman completed the logistics campus this June on a 55-acre parcel at 4300 Shirley Ave., the former site of a Vons/Safeway distribution center. Groundbreaking took place in 2019, with a development team which included HPA inc. as project architect and Oltmans Construction Co. as general contractor.
The property features LEED-certified shells with 36-foot clear height, cross-dock configuration and 185-foot concrete truck courts. Both buildings also include mezzanine-level office space totaling 15,000 square feet. Other tenants at the property include supply chain companies Leopard and World Depot, as well as Japanese food supply firm Mutual Trading Co., which signed the lease contract in 2019.
The campus is some 13 miles northeast of downtown Los Angeles, 1 mile north of Interstate 10 and 4 miles west of Interstate 605, with the Port of Los Angeles and Port of Long Beach both some 35 miles southwest.
Betting on development
According to the CommercialEdge report, 205.8 million square feet of industrial space was under construction across the U.S. at the end of 2020, with an additional 189.5 million square feet in the planning stages. If including the Inland Empire, the Greater Los Angeles area had some 16.5 million square feet underway, or about 8 percent of the total U.S. pipeline, coming into 2021.
Goodman has several L.A.-area industrial projects underway. One of them is Goodman Logistics Center Fontana III, a three-building, 1.1 million-square-foot logistics campus in the Inland Empire West, slated for delivery by September 2021. The company is also developing Goodman Logistics Center Fullerton, a four-building, 1.5 million-square-foot property in North Orange County, slated for a 2022 completion.
Intensified e-commerce activity is one of the main drivers of industrial development. According to the U.S. Census Bureau, online sales in the third quarter of 2020 totaled $209.5 billion, up 36.7 percent from the same quarter of the previous year. Meanwhile, total retail sales increased only 7.0 percent for the same period.