First Industrial gets a building that was rehabbed in 2004 with new office and manufacturing space added, close to the Burbank Airport and with I-5 freeway frontage. Senior Aerospace, a components manufacturer for the aerospace industry, occupies the building on a long-term lease. Minervini says the facility was "a perfect match for one of First Industrial's net leased funds," especially since long-term net leased industrial investments are becoming very hard to find.
The buyer also gets a building in an industrial market that remains tight, according to the latest Cushman & Wakefield research, which shows that leasing activity has accelerated in the latest quarter and vacancy rates remain between 3.7% and 4.3%. Construction is falling as well, " in part suggesting that most developable sites are accounted for within premier industrial locations" Cushman & Wakefield's market report says.
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