North OC Industrial Tenants Take 443,000 SF

ANAHEIM, CA-Six industrial tenants have signed leases totaling nearly 443,000 square feet valued at $14 million in the North Orange County Market in what is being described as a significant increase in leasing in the region. The six new leases suggest a change in leasing in the North Orange County market. Ben Seybold, one of two CB Richard Ellis brokers who worked on all six deals, says that the firm is "seeing the activity picking up significantly as buyers and tenants who sat on the sidelines for much of 2009 are now in a position where they must make decisions about their real estate." Seybold and Sean Ward of the Anaheim office of CBRE completed the six leases, four in Anaheim and two in Fullerton, on behalf of the tenants.

The largest of the six transactions was a 104,000 square foot lease renewal at 2891 E. Mira Loma Ave. in Anaheim, where RB Dwyer Corp. renewed its full-building lease with the landlord, MS Industrial, for 84 months. In a separate transaction, RB Dwyer sub-leased 28,697 square feet of the building to Wheaton Van Lines for 60 months. Seybold and Ward represented RB Dwyer in both the renewal and sublease, and also represented the tenant in the sublease.

In two other leases in Anaheim, Morphotrak renewed for 84,185 square feet at an R&D building 1250 N. Tustin Ave., where it will continue to occupy 100% of the building for 66 months, and Lynch Metals, a division of Metals USA, signed a new five-year lease at 2570 E. Miraloma Way for 45,000 square feet. Seybold and Ward represented the tenants in both of the leases.

In the two Fullerton leases, Seybold and Ward represented both of the tenants. In one of them, Plastic Suppliers Inc. renewed 35,904 square feet at 1040 East Valencia Dr. for five years in a building owned by Principal Real Estate Portfolio Inc. In the other, Carolina Logistics Services signed a renewal for 85,172 square feet for an additional 64 months at 701 Sally Place. The landlord, AEW Capital Management, was represented by CBRE’s Josh Bonwell and Rick McGeagh.

In each of the lease renewals, the new leases lower the tenants’ occupancy costs while extending the length of the terms, Ward noted. “In the Lynch Metals transaction, which was a new lease, we were able to double the size of their facility while keeping occupancy costs almost the same,” he added.