A China-based e-commerce giant has signed on for the largest industrial lease on record in the tight Los Angeles region so far this year.
JD.com agreed to lease the roughly 217,000-square-foot 333 S. Hacienda Blvd. building in the City of Industry, according to Savills’ second-quarter industrial market report. Developer LW Investments is still constructing the industrial building, which is set to be completed this fall, according to CoStar data. The development is being built on roughly 9.5 acres.
The deal is the biggest industrial lease this year in greater L.A., according to both CoStar and Savills data, and comes in a market that sports a 1.9% vacancy rate due in large part to its proximity to the ports of Long Beach and Los Angeles, the nation’s busiest, according to CoStar data. E-commerce also drives demand for industrial space. Previously, logistics firm Pixior had claimed the biggest industrial lease this year with roughly 154,000 square feet taken in Santa Fe Springs.
The lease comes as large Class A industrial spaces are at a premium in the Los Angeles region. There are a mere four Class A industrial spaces available for lease larger than 100,000 square feet in greater L.A., according to CoStar data. The space available is remarkably small in a market that has roughly 944 million square feet of industrial space.
JD.com also signed a deal in May for 217,000 square feet in Piscataway, New Jersey, at a building being built by Indianapolis-based Duke Realty. It also has leased roughly 58,000 square feet in Mountain View, California, and around 218,000 square feet in Fontana, California, according to CoStar data.
City of Industry is the biggest industrial market in greater Los Angeles with 85.8 million square feet, according to CoStar data. The market’s average annual asking rent is $15.26 per square foot, below the metro L.A. average of $17.22 per square foot, according to CoStar data. The market’s vacancy is 1.6%, near the metro L.A. average of 1.9%
Representatives with the building’s landlord and JD.com did not respond to requests to comment from CoStar News.
*Michael Lee with Lee & Associates represented the landlord in the deal.
Author Credit: Jack Witthaus, CoStar