The industrial market in the Antelope Valley has not been on a roll lately, but a major shift could be coming thanks to a Japanese light-railcar manufacturer. Kinkisharyo International LCC received approval last month from the Los Angeles City Council to lease 250,000 square feet of hangar space owned by Los Angeles World Airports for final assembly of railcars. More importantly, Kinkisharyo will build its own $50 million plant on 60 acres of land it will purchase from Palmdale in early 2016. The presence of the Japanese company is sure to give a lift to the real estate market, local observers said. “I think it would be a huge boost in confidence in the Antelope Valley,” said Dennis Marciniak, vice president in the Woodland Hills office of Daum Commercial Real Estate Services. “Typically there would be a few smaller companies that would come on their (Kinkisharyo’s) heels.” With Palmdale owning more than 500 acres adjacent to where Kinkisharyo will build at Avenue M and Sierra Highway, the likelihood is high that other companies will build there as well, said Dave Walter, the city’s economic development manager. “It is going to have some of their suppliers and associated businesses look at the area so they can be close to the facility and supply parts in a just-in-time manufacturing process that Japan is famous for,” Walter said. Kinkisharyo, the U.S. arm of Kinki Sharyo Co. Ltd. of Osaka, will build the rail cars for use on the Blue, Gold and Expo lines operated by the L.A. County Metropolitan Transportation Authority. The development couldn’t come soon enough, as improvement in the Antelope Valley’s industrial market is anemic. In the second quarter, the vacancy rate fell three tenths of a point to 6.7 percent as 30,300 square feet came off the market in a series of small transactions. But that was helped along by landlords, who dropped average asking lease rates 3 cents to 47 cents a square foot, according to the L.A. office of Colliers International. There is some hope from another source. Palmdale’s largest vacant industrial space – a 130,000-square-foot building once occupied by contract manufacturer Senior Systems Inc. – could soon get a tenant. A potential buyer has extended closing on the 600 Technology Drive property, though if the deal doesn’t happen by the end of July, that buyer would fall out of first position, said Marciniak, who noted another buyer is waiting in the wings. In April, Anywind Wind Power Electric Inc., a South Korean alternative energy company, announced the opening of its U.S. headquarters in Palmdale and its interest in buying the former Senior Systems building for manufacturing. Meanwhile, the 1.29 million-square-foot office market was virtually stagnant. The vacancy rate was unchanged at 11.4 percent, while about 100 square feet was taken off the market. Landlords dropped the price by 10 cents to $1.72 in the second quarter but that didn’t seem to help. Still, Palmdale officials are optimistic, seeing the inklings of a recovery. Fountainhead Development of Newport Beach broke ground in April on a 5-acre retail center that will include grocery chain Aldi, Dunn-Edwards Paints and eateries Chick-Fil-A, Krispy Kreme, Yogurtland and The Habit. Water said that in the coming months there should be more announcements on new businesses, both in the retail and industrial sectors. “After four or five years of a weak economy, there is an upswing in people who are kicking the tires,” he added. – Mark R. Madler Main Events – The Sierra Business Center in Palmdale sold in April for $1.7 million. The 12,600-square-foot office property was purchased by Kenneth Shaw of Palmdale from Randal Jagua of Palmdale. The 1008 W. Avenue M4 building was constructed in 1990 and is fully leased. Tenants include Arruda Realty, MC Mortgage and Castle Stone Property. – The 123-unit Desert Sands Mobile Homes in Lancaster traded hands for $4 million. Caritas Affordable Housing Inc. picked up the nearly 18-acre property from the Lancaster Redevelopment Agency. The park was built in 1989 and last traded hands in 1993 when the agency bought it from Desert Sands Estates LP of Granada Hills. The 45111 25th St. East park has no vacancies, according to market research firm CoStar Group Inc. – A 16,000-square-foot Palmdale strip center sold for more than $1.8 million in April. Saddleback Plaza, 16921 E. Avenue O, was purchased by Saddleback Real Estate Inc. of Lancaster from Berglund Trust of Palmdale. The center was built in 1991 and is fully leased. Tenants include Lake Los Angeles Library, Department of Health Services and True Value Co. – A gas station and convenience store at 918 W. Lancaster Blvd. in Lancaster was purchased for $1.9 million in May by Gulbanu Enterprises Inc. of Northridge. The 2,803-square-foot station was built in 1968 and was sold by Hooshmand Mobasser of Palmdale. Antelope Valley Industrial Market At a Glance Inventory: 4.59 million square feet Under Construction: 0 Class A Asking Rents: 47 cents