Rexford Industrial Inks 124 KSF Lease in San Fernando Valley
- Apr 27, 2021
Quixote Studios has agreed to occupy a 123,974-square-foot industrial building in the San Fernando Valley submarket of Los Angeles.
Newmark worked on behalf of owner Rexford Industrial to secure the long-term agreement. Quixote Studios, which provides studio, stage and office space, was represented by on outside firm.
Rexford Industrial purchased the building in 2018 for $22.5 million, according to CommercialEdge.
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The entertainment company will occupy the high-image building by this year’s third quarter. Located at 12154 Montague St. in Pacoima, the property comprises 95,394 square feet of warehouse space and 28,580 of office space. It features 24-foot clearance heights, six ground-level and three dock-high loading doors. The Class A building was completed in 1974 and received a full cosmetic renovation in 2015, CommercialEdge data shows.
Across the street, Quixote Studios invested $30 million into the development of a new production facility that will include five soundstages totaling 75,000 square feet, as well as 20,000 square feet of office space, according to the L.A. Times. Following the signing of the new lease, the company’s footprint in Pacoima will exceed 200,000 square feet.
High demand for entertainment
Rexford Industrial has been busy investing across Southern California infill markets over the past year. In December 2020, the REIT closed on a $103 million portfolio deal and continued its shopping spree this year, with several recent acquisitions totaling $72.7 million.
Industrial space across Greater Los Angeles is in high demand, with the area presenting the tightest vacancy rates for such assets. Vacancy in the San Fernando Valley and Ventura County industrial market reached a historic low of 1.7 percent at the end of 2020, according to Colliers research, which also shows that the area’s rents are expected to continue growing.