Spec Industrial Build Lands in Sun Valley

LOS ANGELES—Xebec and Cornerstone Real Estate have partnered to build the Sun Valley Business Center, a two-building, 361,038-square-foot industrial facility in Sun Valley, CA. The $58-million project is the first of its kind in the submarket, which has one of the lowest vacancy rates in Southern California. The joint venture purchased the 15-acre land site for the development in October 2015.

“The market is what we call hyper tight,” John DeGrinis, EVP at Colliers International, tells GlobeSt.com. “That is an extreme term, but in the San Fernando Valley proper, the overall vacancy rate for the market is below 1%. If we look at the Central Valley, the vacancy rate is .1%, and in the East Valley, where the subject property resides, the vacancy rate is .5%. We are so in need of buildings, and we just don’t have any. At this time right now, there is not one building that is 100,000 square feet or higher in the San Fernando Valley that is vacant for a user to move into.” DeGrinis is marketing the project, along with VP Patrick DuRoss and AVP Jeff Abraham.