JLL Brokers 149 KSF Distribution Center for Herbalife in Carson, Calif.

JLL found Herbalife a new distribution-center home in Carson, Calif., in a 148,908-square-foot industrial space.

July 13, 2011
By Nicholas Ziegler, News Editor

One of the constants in commercial real estate is that with company growth comes needs for increased office space. To that end, Herbalife, which has seen some solid increases in its revenue, distribution and personnel since 2006, just signed a lease for a 148,908-square-foot industrial space in Carson, Calif.

The deal, brokered by Jones Lang LaSalle, will bring the company a 10-year lease at the 438-acre Dominguez Technology Center, and will allow the firm to double the size of its current West Coast distribution center. Herbalife began looking at the possibility of a new facility as far back as five years ago, according to Mike McRoskey, managing director of JLL.

“Their business model is changing and evolving,” McRoskey told Commercial Property Executive. “When it crystalized, they wanted to move forward. The California facility is a showcase piece where they can show distributors the full experience, where they can show how the products are made.”

The Carson area is also an opportunity for the company, according to JLL senior vice president Barry Hill. “Class A activity in Carson has been steady, with only a short supply of product,” he told CPE.

McRoskey agreed, stating that “the South Bay continues to be a highly sought after location which witnessed a surge in net absorption and speculative development in the first half of 2011. The current economic conditions and our knowledge of local market dynamics allowed Jones Lang LaSalle to find a building that could accommodate Herbalife’s growth at favorable lease terms.”

The new facility is slated for a November opening.