Industrial Development Heads North with Massive Build

The walls are up at the Valencia Gateway V.

LOS ANGELES—AEW Capital Management and Sheridan Ebbert Development has tilted the walls on Valencia Gateway V, a three building office and industrial development in Valencia, CA. The property is part of the largest master planned industrial development in Los Angeles County. The developers will deliver the project in the first quarter of next year.

Due to scarcity of land, large industrial developments in Los Angeles County are rare, but demand is at all time highs. Even in markets like Valencia, there is a land shortage for these developments. “The Valencia and Santa Clarita Valley area has had a significant shortage of entitled and improved land available for development,” Craig Peters, a broker at CBRE that is representing the developers in the project. “This land shortage has severely limited new developments of any size in the area over the past decade. Industrial demand is at an all-time high for companies seeking locations in the Valencia and Santa Clarita Valley market.  At the same time, supply is at record lows with less than a 2 percent vacancy rate.  Accordingly, Valencia Gateway V will provide much needed space to companies looking to expand or relocate within the LA North market , which includes San Fernando Valley and Santa Clarita Valley.”