Panasonic Relocates, Expands in SoCal
- Apr 08, 2011
April 7, 2011
By Barbra Murray, Contributing Editor
In need of more elbow room, Panasonic Corporation of North America decided to take an entire industrial building within Anaheim, Calif.’s 2,300-acre Anaheim Canyon Business Center industrial park. The company signed a lease with the landlord, Panattoni Development Co., to make its new home in the 300,000 square-foot Anaheim Concourse Distribution Center facility.
Carrying the address of 3454 E. Miraloma Ave., Anaheim Concourse sits 30 miles southeast of Los Angeles in Orange County. The building, developed in 2002, last changed hands in 2008 when Pacific Sunwear Company of California Inc. sold it to Panattoni in a $24.5 million deal.
The lease agreement will allow Panasonic to relocate from its current, smaller site of 175,000 square feet in Santa Fe Springs, approximately 15 miles from the consumer electronics company’s new location.
Panattoni relied on in-house representation in the lease transaction, while Panasonic turned to commercial real estate firm Newmark Knight Frank, along with Colliers International, for representation and guidance in the consumer electronics company’s search for space. “This is a more modern facility that we were able to source within Panasonic’s preferred geography without the company having to move to outlying submarkets,” Timothy Greiner, a principal with Newmark Knight Frank, noted. “We found that a thorough study of not only real estate costs, but also logistics and transportation requirements, made the Anaheim location, which is closer to the Port of Los Angeles than many of the submarkets, a better choice in both environmental sensitivity and economical operation for Panasonic’s specific business needs.”
Anaheim, where the average rental rate for warehouse/distribution facilities is an annual $5.16 per square-foot, according to a report by commercial real estate services firm Cushman & Wakefield Inc., is one of Orange County’s more successful industrial submarkets. The average vacancy was 5.5 percent at the end of 2010, and while the Orange County market experienced negative absorption, Anaheim experienced positive absorption of about 790,200 square feet.