SAN FERNANDO VALLEY, CA—Ricon Corp. is planning to move its headquarters offices from the current location in Panorama City, CA. The supplier of technology products for transit companies has signed an industrial lease with Liberty Property for a 65,347-square-foot property located at 1135 Aviation Place in the San Fernando Business Center.
Ricon Corp. chose to relocate to the new facility after moving some of its heavy manufacturing operations to Mexico. The company is vacating an approximately 200,000-square-foot facility at 7900 Nelson Road in Panorama City. “They are still retaining 125 employees in the location,” David Harding, SVP at CBRE, tells GlobeSt.com. “They were looking throughout the San Fernando Valley, through Santa Clarita Valley and into Ventura County and the Semi-Valley market. They ultimately determined they liked the quality of the building that they ultimately took, and certainly the proximity for their employees was an advantage as well.” Harding represented both the buyer and the seller along with his CBRE colleagues Greg Geraci, Matt Dierckman and Billy Walk.
The lease is one of the largest industrial leases completed in the San Fernando Valley in the past 12 months. Like many of the industrial markets in Southern California, the Valley has a very low vacancy level. Right now, we are at 1% plus,” says Harding. “The choices out there are limited for tenants, and it is an infill market and there are very limited opportunities for tenants.”
The space that is available in Southern California is being snatched up instantly for development. Goodman Birtcher found 75 acres in the Inland Empire West and recently broke ground on a $146 million 1.1-million-square-foot facility, for example. Pacific Industrial launched another 500,000-square-foot development last year after purchasing available land from the city.
Ricon Corp. chose this property because of its proximity to the 118, 5, 210, 170 and 405 freeways, and its modern facilities and business park setting. The lease transaction is valued at $5.46 million.