Package deliverer UPS is increasing its local presence with the signing of the Valley’s largest lease so far this year, according to L.A.-based CBRE Group Inc.
UPS, whose official name is United Parcel Service of America Inc., has leased 137,000 square feet from Geringer Capital at 16689 Schoenborn Street, taking one of three buildings in the North Hills Industrial Park. The industrial site is about a mile from UPS’s main local location in Van Nuys, and UPS will use the building for overflow traffic during its busiest months, according to CBRE.
Other tenants at the 19-acre park include FedEx and stone and tile company Walker Zanger.
CBRE’s Greg Geraci, Dave Harding, Billy Walk and Matt Dierckman represented Geringer, while Mike Fowler of Jones Lang LaSalle Inc. represented UPS.
According to CBRE, UPS’s increased presence locally demonstrates the increasing impact that the growing e-commerce industry has on the industrial market. Logistics companies are opening distribution facilities in key areas that enable them to do same-day and next-day deliveries.
“The need for speed is greater than ever,” Harding said. Referring to the UPS deal, he added “this is an ideal location for today’s demands.”
CBRE predicts rents for industrial space will jump 6 percent by year-end in the L.A. market.