ProLogis Signs Two Tenants for 215,000 SF

Expeditors International has signed for 119,000 sf at South Bay Distribution Center, located at the intersection of the Interstate 405 (San Diego) and Interstate 710 (Long Beach) freeways at 20821 Santa Fe Ave. in Carson. Paramount can has signed for 96,000 sf at Mid Counties Industrial Center, located near the intersection of Interstate 5 and Highway 91 at 14407 E. Alondra Blvd. in La Mirada.

The Expeditors International deal is the company's fourth lease with ProLogis; it now occupies approximately 450,000 sf of distribution space at ProLogis properties in California, Florida, Texas and Mexico.

Paramount Can, a merchant wholesaler of metal, plastic and corrugated industrial packaging products, is consolidating two separate distribution centers and will use the space at the ProLogis Mid Counties Industrial Center to assemble and distribute packaging materials to its customers located across the Western US.

The Paramount Can space will also be used by Paramount's sister company, Paramount Global Services Inc., a logistics and supply chain management company. Paramount Global provides ocean and airfreight, brokerage, customs clearance and warehousing and distribution services throughout the world.

Patrick Maloney, first vice president and market officer for ProLogis in Los Angeles, says that the leases underscore the significance of the Los Angeles Basin as a strong distribution market due to its proximity to the Los Angeles ports and a highway infrastructure that provides access to a large portion of the Western US. Expeditors International and Paramount are both strong companies with a detailed focus on their supply chain networks, Maloney points out.

ProLogis was represented by Jeff Kernochan of Fischer & Co. in the Expeditors International deal and by Bob Crenshaw at Grubb & Ellis Co. in the Paramount Can deal. Terms of the leases were not disclosed. Recent market reports peg the average asking triple-net lease rates for industrial space at 68 cents per sf per month in the South Bay submarket and 64 cents in the Mid-Counties submarket. Vacancy stood at about 2.7% in the South Bay and 1.6% in the Mid-Counties region at the end of the first quarter.