CHINO, CA-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that First Industrial Realty Trust Inc. recently executed a long-term lease agreement for 300,300 square feet with Lollicup USA Inc. The specialty beverage retailer and supplier will occupy the entire First Chino Logistics Center, which will serve as its U.S. headquarters, and production, distribution and service center.
Lollicup USA pre-leased the building prior to completion and will take occupancy midway through the second quarter of 2013. Located at 6185 Kimball Avenue, First Chino Logistics Center is situated on 16 acres in the City of Chino in San Bernardino County in the West Inland Empire.
Paul Earnhart and Steve Haston of Lee & Associates assisted on the new lease. Haston tells GlobeSt.com that “the strengths of the Chino market are ideally represented in this transaction. The proximity to L.A. and Orange County, the availability of new class ‘A’ product and the rate advantages to markets further west continue to make Chino the best performing city in the Inland Empire for industrial product. First Industrial’s willingness to develop speculatively has been rewarded handsomely with a top market lease rate and a lease transaction prior to construction completion.”
According to Ryan McClean, senior regional director for First Industrial’s Southern California portfolio based in Los Angeles, says that “Lollicup USA is investing to keep pace with their growing network of retail stores as well as their expanding beverage supply business, which meant they needed more industrial space.”
The supply-constrained Chino industrial submarket is the intersecting point for the four major counties of the greater Los Angeles area, McClean continues.
According to Johannson Yap, First Industrial’s chief investment officer, the firm hopes to expand and enhance its Southern California portfolio, and this development is part of that plan. “We successfully leased the building prior to completion, more than one year ahead of schedule. “
According to Yap, “This lease reflects the quality and location of First Chino Logistics Center, as well as the efforts of our local team and broker partners in providing a solution for our new customer.”
According to a recent industrial market report from CBRE Group, activity levels remain healthy in the region. “Fueled by the increased user demand and lack of supply, 4.1 million square feet, a total of 9 buildings, of construction were completed in the fourth quarter. Three buildings, totaling 2.2 million square feet were completed in the East submarket while six buildings, totaling 1.9 million square feet were completed in the
And due to that recently completed construction, the overall vacancy and availability rates slightly increased in Q4 quarter, ending at 6.6% and 11.4%, respectively. “The vacancy rate in the West submarket now stands at 6.0% up from 5.6% recorded at the end of the third quarter. Availability in the West also increased quarter-over, rising from 10.3% to 10.4%. The East submarket vacancy rate showed less of an increase ticking up from 7.3% to 7.4% while the availability rate decreased from 12.8% to 12.7%,” says the firm.