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LOS ANGELES-A local developer has started construction of a speculative 206,000-sf industrial building in Valencia, hoping to cash-in on the San Fernando Valley’s tightening market for commercial space.

LA-based Investment Development Services figures its spec building on the county’s northern rim will prove successful. Vacancies in the older Valley market have dropped below 4%, sending rents skyward and forcing many users to look for space in outlying areas.

The $13-million complex will stand inside the 50-acre Vista Business Park, on Avenue Williams. Completion is expected early next year.

Several factors are working in favor of the area’s landlords. “The local economy is very strong, and there’s just not much space to build new product,” Trammell Crow broker Brad Koehler tells GlobeSt.com. “Most of the new development has to go to outlying areas, or the builder has to buy an older facility and then either rehab it or demolish it and start over.”

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