Lease Shows How Landlords Are Vying for Tenants

CAMARILLO, CA-The reduced rent at the start of a nearly 99,000-square-foot industrial lease, and other deal terms, illustrate how landlords are working hard to attract and retain tenants these days, according to a Lee & Associates broker who represented the building owner in the transaction. Grant Harris, a principal with Lee & Associates-LA North/Ventura Inc., reports that landlord Triliad Development Inc. "wanted to make sure that it did not miss the opportunity" to sign auto parts distributor Dynacorn International Inc. as a new tenant at Triliad's Camarillo Commerce Center.

Harris, who represented the landlord along with Lee’s Robert Shafer and Grant Fulkerson, explains that Dynacorn was seeking a single building to consolidate two Oxnard warehouses totaling 60,000 square feet. Dynacorn had a number of choices in Ventura County, but the company preferred the layout and the loading capacity of the Triliad building at 4030 Via Pescador in the Camarillo Commerce Center.

Harris notes that the building had only been on the market for lease for six months, a relatively short time by today’s standards, but the landlord wanted to make sure that it did not miss the opportunity to add this tenant to its industrial park mix. To sweeten the deal, Triliad offered a reduced rental rate for the first two years of the lease and delayed the start-date for the lease. This gave Dynacorn the option of an early occupancy without having to double up on its rent payments.

“We wanted to make Dynacorn a very enticing offer, but at the same time, this was a very smart move for the landlord,” Harris says. The transaction provides Triliad with a a tenant on a long-term basis and the opportunity to return to market rate lease rates when the economy improves, he adds.

Dynacorn's deal is a seven-year lease with a total consideration of nearly $4 million and is one of the largest signed in Ventura County this year, according to Harris.

“This building, with 12 truck-high doors, is one of the few true warehouse buildings in Camarillo,” he says, “but with Ventura County industrial vacancy rates now at 4.8% on a direct basis, even landlords with the highest quality buildings are working hard to attract and retain tenants.”