CARSON, CA—Transportation services provider NOVA NCFS has signed a 60-month lease renewal for a 259,430-square-foot industrial facility in Carson. The lease transaction is valued at $10.5 million, which is a fair deal for the market. Although the new value does represent a rental increase, it is a price that is beneficial for both parties.
“The lease value does represent an increase, but the market itself has been going up for the last three or four years,” Don Smith, a principal in the Los Angeles/Long Beach office of Lee & Associates, tells GlobeSt.com. “It is a fair deal for both parties. The landlord got an increase, and the tenant got a fair rental price.” Smith represented the tenant in the transaction, as he has since the tenant first took occupancy 15 years ago. Prologis, the landlord, represented itself in the transaction.
The Carson market is, of course, very tight, especially for large facilities like this one. For that reason, Smith explains, tenants don't often move. “Unless there is an overwhelming reason to move, most of the tenants in this neighborhood tend to stay because it can be expensive to move and the market is extremely tight,” he says. “In this particular case, the building itself was a very good fit. It was pretty close to a build-to-suit initially. We originally signed a 10-year lease and then extended for five years, and now we have extended for another five years. There are really no properties around that are similar to this particular property. For those reasons, they were committed to staying.”
Located at 1710 E. Sepulveda Blvd., in Carson, the property was built in 2001. It offers access to the ports and all major freeways.
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