The number of functionally obsolete buildings in the San Fernando Valley is staggering. In fact, most of the San Fernando Valley’s industrial properties are functionally obsolete. Approximately 75 percent of properties 10,000 square feet and greater were built before 1979 with low clearance, no sprinkler systems and poor turning access for trucks, according data compiled by David Harding of CBRE Group Inc., a long-time area industrial broker. The older buildings have driven some businesses to outlying areas such as the Santa Clarita Valley where properties come equipped with modern amenities, high ceilings and ample parking. New development or redevelopment activity has been scarce. Limited new land has helped put a brake on development, brokers say. But perhaps a more limiting factor is that landlords still can fetch enough rent at the aging sites, many of them formerly home to aerospace companies, so there is less incentive for landlords to invest in retooling their properties. “When you can still generate rents of 40 to 50 cents, it really makes it difficult to (redevelop) the thing,” Senior Executive Vice President John DeGrinis of Colliers International said. DeGrinis said the San Fernando Valley’s industrial market comprises mostly smaller manufacturing companies, making it easier to retain tenants in older buildings than it would be in markets focused around distribution. And Jenny Schuetz, assistant professor at the USC Lusk Center for Real Estate, said often issues such as the need for environmental cleanup makes redevelopment too costly. Revamping one property at a time is often cost prohibitive, she said. One property currently going through an environmental cleanup is a former Glendale aerospace site on 5426 San Fernando Rd. Target Corp. recently sold the property for about $18 million after flirting with redeveloping the site. Senior Vice President Greg Geraci of CBRE, who represented Target along with Harding, said the buyer will likely level the buildings in the future, but for the next five years or so is “going to make the buildings work.” Geraci said the buyer, Revv Property LLC, simply paid more than other bidders who wanted the 9.5 acre site for its redevelopment potential.