As industrial lease rates continue to rise and parcels of vacant land become smaller and harder to find, the Los Angeles and Orange County region could eventually see an increase in the development of multistory industrial facilities, according to a report from brokerage CBRE Inc. “In the Los Angeles area, I don’t think we’re there quite yet,” said Dave Harding, senior vice president with CBRE Inc. “But, in my opinion, it’s a good and realistic concept to consider for the future.” Harding noted the cost of building multistory industrial is high and most companies prefer not to go down that path. But he said a number of multistory industrial developments are popping up on the West Coast. In April, logistics company Prologis broke ground on a three-story, 589,615-square-foot multistory fulfillment center in South Seattle. Harding said another project in South San Francisco is in the planning stages. And there are many examples in Asia. The concept may be a fit for retailers, users of third-party logistics and e-commerce companies dealing with consumer demand for same-day and next-day delivery. Many of these companies are looking for industrial space near important population centers to house last mile delivery operations, according to CBRE. Multistory industrial buildings in densely populated infill markets throughout the region could provide greater efficiencies for these last mile operations. The downside is that building a multistory warehouse can be twice as expensive as redeveloping an existing building. The structure needs to be designed to carry a heavier weight load than conventional industrial, and multiple stories create challenges for truck access, said Harding. Harding said the concept might also make sense for companies that need to be in a specific location to best serve their customer base. “In the San Fernando Valley area, it’s something that could happen over time,” said Harding. “It’s really a question of at what point does it make economic sense.” TForce Final Mile Speaking of last mile delivery operations, TForce Final Mile leased a 52,640-square foot industrial warehouse in Sun Valley, according to CBRE. The industrial building is located at 11085 Olinda St. Total consideration of the term is approximately $3.5 million. Greg Geraci, Dave Harding, Billy Walk and Matt Dierckman from CBRE represented the landlord, Olinda Properties. Patrick DuRoss of Colliers International represented TForce. “With a sub-1 percent vacancy rate for larger buildings in the market and limited land for new development, Class B buildings built in the 1960s and 1970s still have value and functionality in the market, whether for entertainment, manufacturing or last-mile distribution uses such as TForce Final Mile,” said Harding in the press release. OnTrac, a regional package delivery company, occupied the property prior to the recent lease. TForce chose the site because of its functionality and the fact it can unload multiple 53-foot trailers at one time while also driving its delivery fleet onto the floor for quick reloading. For its part, OnTrac is moving into a new 255,000-square-foot industrial property in Sun Valley developed by Xebec Realty Partners in Seal Beach. Apartment, Office Deals Calabasas brokerage Marcus & Millichap Inc. has sold a string of apartments in the greater Valley. The multifamily building at 4540 Hazeltine Ave. in Sherman Oaks sold for $7.13 million. The building includes 23 units and 21,300 square feet. Jeff Louks, executive managing director of investments with Marcus & Millichap, along with Brett Sanson and Glen Scher represented the seller. Catherine O’Brien, senior associate with the firm, represented the buyer. The Continental Apartments at 11255 Moorpark St. in Studio City sold for $6.4 million. The complex includes 23 units and a total of 22,176 square feet of space. Janette Monfared, first vice president of investments at Marcus & Millichap, represented the buyer and seller in the deal
