ANAHEIM, CA-The Tile Club, a tile retailer, has leased a 60,160-sf industrial building for its corporate headquarters, according to Troy Williams of the Anaheim office of Grubb & Ellis, who brokered the seven-year lease with building owner Seaward Properties of Orange. The Tile Club has already occupied the single-story, concrete tilt-up building, which is located at 1551 Babbitt Ave.
The Tile Club's new facility is a relocation from 27,000 sf elsewhere in Anaheim, which is home to one of the region's largest concentrations of tile wholesalers, retailers and distributors. The city is known for its Mile of Tile, also known as Tile Row--a stretch of retailers, showrooms and distributors selling tile, marble and related products.
Williams represented both the Tile Club and Seaward Properties in the lease. Terms of the deal were not disclosed, but the company is believed to have committed to a lease valued at between $2.5 million and $3 million over the seven-year term.
The Tile Club lease is an indication of what brokers describe as a strengthening market for leasing of industrial space in Orange County. Recent market reports show that the average asking triple net lease rate reached about 61 cents per sf per month in the first quarter of this year.
The availability rate for industrial space in the county stood at approximately 5.3% in the first quarter, down by more than 4% from the first quarter of 2005. Developers, in response to the growing demand for leased space as well as the continued demand for industrial properties for purchase by owner-users and investors, have increased construction although development sites are difficult to find.
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