Sprinkles Signs Sweet Industrial Lease

INGLEWOOD, CA-Sprinkles Cupcakes has signed a lease for a 32,213-square-foot industrial space at the Airport Business Center in Inglewood, CA. The facility will serve as the company's headquarters. Sprinkles will move in December 1 after remodeling the space to add necessities, like a test kitchen.

“When [Sprinkles Cupcakes'] agent called about another property and described its dream building, this was it,” Courtney Bell, the Klabin Company/CORFAC International broker who represented the landlord, tells GlobeSt.com. “The building proved to be a very good match for them.” After touring, Sprinkles leased the building several months before it became available.

Sprinkles is consolidating multiple warehouses, including its West Los Angeles headquarters, into this new space. The building's 4,641 square feet of office space, 21-foot minimum interior clearance, dock high and ground level loading and on-site parking made it an ideal space for Sprinkles' headquarters. The building is part of the larger 400,000-square-foot Airport Business Center industrial facility, which is currently 95% occupied.

“When you have this combination of features available, it gets a lot of attention,” says Bell. “In this market, you are often looking at older buildings, ground level, lower clearance and without sufficient sprinklers to do high-pile storage.” Although the specific terms of the lease are confidential, Bell says that it was an attractive and long-term deal.

Demand for industrial properties remains strong, and Bell believes this is due to a lack of quality supply. Recent CBRE research supports this opinion, showing that development in Southern California has reached record levels since the 2008 recession. Los Angeles currently has a low 2.7% vacancy rate with 3.2 million square feet under construction.