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CITY OF COMMERCE, CA-Bridge Publications has signed a 10-year lease valued at $15 million that will fill a 270,000-sf manufacturing building at the Telacu Industrial Park that was vacated just under a year ago by Dixie Consumer Products, maker of Dixie Cups and other related products. According to CB Richard Ellis brokers on the deal, the new tenant will use the space for manufacturing, warehousing and distribution in an operation that will replace approximately 275 of the 325 jobs that were lost when Dixie vacated the property. Tenant Bridge Publications is involved in printing, publishing and compact disc production.

CBRE’s Jeff Stephens, John Privett and Cameron Merrill in CBRE’s Commerce office represented Telacu in the lease, which is the largest direct lease in the City of Commerce in the past seven years, according to the CBRE team. Stephens says that, upon learning of the plant closing by Dixie, Telacu (The East Los Angeles Community Union), aggressively sought to find another manufacturing business to occupy the space.

One reason that relatively few new large leases have been signed in Commerce in recent years is that the city is fully built out and lacks land for new development. For the most part, new buildings are redevelopments in which new projects are replacing old, obsolete buildings.

The lack of new development and the strong demand make the City of Commerce, with about 81 million sf of industrial space inventory, one of the tightest industrial markets in the country. The direct vacancy rate has been hovering around 3% in the city, with the total availability only a fraction of a percentage point higher, according to recent quarterly market reports.

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