Clarion Partners Signs New Orange County Lease – What is a Ground Lease?
Clarion Partners has signed a new lease at its Imperial Distribution Center, a 367,194-square-foot facility in Brea, Calif., bringing it to full occupancy. Knight-Swift Warehousing & Fulfillment will take on 126,681 square feet at the industrial property, intending to use the space for the expansion of its third-party logistics business. JLL worked on behalf of the future tenant, while Cushman & Wakefield represented the landlord.
Completed in 2016, Imperial Distribution Center features a 36-foot clear height, ESFR systems, insulated ceilings and a two-story office build-out component, according to CommercialEdge data. The other tenant at the location, Worldpac, occupies some 240,000 square feet under a 10-year lease that was signed in 2017.
Situated on some 17 acres at 1225 W. Imperial Highway, the property is close to State Route 57, connecting it to Anaheim, Calif., and Santa Ana, Calif. The one-story concrete building is 25 miles from Ontario International Airport and within 27 miles of downtown Los Angeles.
High rent growth, tight vacancy rates
According to a recent CommercialEdge report, Orange County ranked third for average in-place rent increases among the Southern California industrial markets on a year-over-year basis as of October. Rents were up by 7.6 percent, trailing the Inland Empire (11.6 percent) and Los Angeles (9.7 percent) but surpassing the national average increase of 6.2 percent. The area’s vacancy rate stood at 3.1 percent, below the national 4 percent average. In terms of year-to-date sale price, Orange County was the national leader, with $360 per square foot.
In one of the more significant leasing deals of the third quarter, TAE Technologies leased a 99,638-square-foot industrial facility that is under construction in Irvine, Calif. The Class A property is owned by LBA Logistics and is slated for completion in 2023.
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