LOS ANGELES-Some relatively small deals financially say much about what is going on in the region’s industrial markets as users consolidate operations for efficiency. Stephen Calhoun, a senior vice president in Colliers International’s Commerce office who specializes in industrial properties within Central Los Angeles, says that many of the industrial deals being closed these days illustrate that, in today’s market, it is important for companies to operate as efficiently and effectively as possible.

“That could mean downsizing or consolidating operations, which is a major trend we are tracking among industrial users in Los Angeles,” Calhoun says. As evidence of this trend, he cites a lease by Los Angeles-based ATV Inc., a tire warehousing and distribution firm.

ATV leased a 71,712-square-foot industrial building at 16201 Commerce Way in Cerritos, one of the Mid-Counties submarkets, for approximately $1.2 million. The Mid-Counties submarkets are so named because they include markets in both Los Angeles and Orange counties that many industrial users favor for their central location.

According to Calhoun, ATV Inc., was previously located in two separate warehouses and consolidated into this one, more central location, which will allow the firm to streamline its business and operate more efficiently. WCV Commercial Properties, a Chicago-based real estate investment company, owns 16201 Commerce Way, which is part of the firm’s Western US portfolio encompassing 23 million square feet within 550 properties.

WCV was represented by Calhoun and Christopher Sheehan, a Mid-Counties industrial specialist and senior vice president in Colliers International’s Torrance office. According to Sheehan, industrial users in the Mid-Counties market, which includes the Cities of Cerritos, Buena Park, Santa Fe Springs, Downey, La Palma and La Mirada, are choosing to consolidate operations in efforts to minimize costs and maximize production.

Another example of a company consolidating in the Mid Counties market is a lease signed by Cleveland-based Lincoln Electric, a leader in the manufacturing and distribution of welding equipment and supplies. The firm leased a 53,176-square-foot industrial facility at 12979 Sandoval St/ in Santa Fe Springs.

Sheehan says that Lincoln Electric took advantage of the down market by securing a beneficial long-term lease while simultaneously relocating its previously separate regional sales office and warehouse into one class-A, high-image facility. Sheehan adds that the building, constructed in 2008, “will enhance Lincoln Electric’s profile in the Los Angeles area and will reduce the costs of operating in two separate facilities.” The 11-year lease was valued at approximately $5 million.

Sheehan and Mike Grady, an associate in Colliers International’s Torrance office, represented Lincoln Electric in the transaction. The building owner, A.C. Coral Kay Trust, was represented by Jack Rosenberg of Corporate Realty Advisors and Chuck Berger of Grubb & Ellis.

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