A 135,579-square-foot industrial lease has been signed at Tapo Canyon Commerce Center, an under-construction, five-building, 342,557-square-foot industrial campus in Simi Valley.
The tenant — who has committed to the largest building at the site —has been identified as a supplier of entertainment equipment.
Newmark Group‘s John DeGrinis, Patrick DuRoss and Jeff Abraham serve as the exclusive leasing advisors for the project and represented development partners Stream Realty Partners and QuadReal Property Group in the transaction. Sam Glendon of CBRE represented the undisclosed tenant in the lease transaction.
“We are thrilled to secure the first tenant at this underway best-in-class industrial complex,” said DuRoss in a statement. “With a sub-1% industrial vacancy rate in the San Fernando Valley, the completion of this project will deliver much-needed industrial inventory and provide companies with excellent accessibility to the greater San Fernando Valley. As Tapo Canyon Commerce Center continues to gain traction and exposure, similar industrial occupiers will undoubtedly be attracted to this project given its unparalleled attributes that simply don’t exist elsewhere in the Valley.”
The five-building Tapo Canyon Commerce Center has a construction completion goal of late October.
The industrial buildings range from 25,786 to 135,579 square feet. The remaining leasing options span from 25,786 square feet to 76,445 square feet in four buildings of the campus.
Features include 28- to 36-foot clear height, window-lined office space, above regional standard dock-high loading, five different access points to the campus and immediate 118 freeway access.
“Industrial occupiers throughout the L.A. North region will continue to face the growing concern of whether to operate their businesses out of inadequately sized or functionally challenged facilities given the average age of the region’s industrial base and the continued evolution of the industrial product type. Tapo Canyon Commerce Center provides the market with the modern and efficient solution that best-in-class L.A. North tenants are seeking, and our pre-leasing of Building 5 at the project is a testament to that need,” said Scott Sowanick, managing director for Stream’s industrial development services group.
Tapo Canyon Commerce Center offers tenants high-image street frontage along Tapo Canyon Road and Los Angeles Avenue, as well as immediate proximity to the San Fernando Valley and the central geography to the North Los Angeles region.
The North L.A. region, which includes Simi Valley, accounted for nearly half of greater Los Angeles’ net absorption activity through the first half of 2022, with 1.4 million square feet of industrial absorption year to date, according to Newmark Research. With a market-wide vacancy rate of only 0.9%, tenants taking occupancy of preleased space continues to drive absorption figures.