Monday, April 4, 2011

Colliers International Negotiates a Three-Year Lease for 113,500-SF Industrial Building in Pacoima, CA

PACOIMA, CA, April 4, 2011 -- Colliers International, the second largest global real estate services organization, recently negotiated the lease of a 113,500-square-foot industrial building located at 12224 Montague St., Pacoima, Calif. for Natural Balance Pet Foods, Inc., a California-based pet food company.

The three-year lease is valued at approximately $1.7 million.

 The landlord, a private investor, Michael Lichstein, was represented by David Hoffberg, SIOR and Jerry Scullin of Delphi Business Properties.

The tenant was represented by John DeGrinis (top right photo), SIOR, senior executive vice president based in Colliers International’s Encino office, Patrick DuRoss (middle left  photo), associate vice president, and Jeff Abraham (lower right photo), senior associate.

 “The 4th quarter 2010 and the beginning of 2011 witnessed some larger transactions in our region,” said DeGrinis.

 “This is one of five larger transactions (80,000 sf +) just completed in the last four months.  Despite a smaller inventory of available larger buildings, we are still seeing ongoing erosion in lease rates.

 “Rents for all five of these transactions are in the $0.40s per square foot range, which evidences the continuing slide we have seen in average rental rates over the past few years.  We expect that as supply and demand forces get closer to equilibrium, we will see some firming in rates.”

 “We have been working with Natural Balance for many years,” added DuRoss.  “Their business has been experiencing significant growth, and current market conditions led them to consider their multiple facility options.  In the end, Natural Balance was able to secure a good distribution facility that will accommodate their immediate growth at very low rents relative to prior years.”

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