L’Oréal Inks 240 KSF Lease in Southern California
Commercial Property Executive
by Barbra Murray on 08-22-2018
The last remaining space at 5337 Wheeler Ridge Road in Tejon, Calif., a 480,000-square-foot industrial building at Tejon Ranch Co.’s 1,450-acre Tejon Ranch Commerce Center, has just been claimed. Majestic Realty Co. and TRC, co-developers of the state-of-the-art distribution center, recently signed L’Oréal USA to a 240,000 square-foot lease at the Class A property.
With a location along Interstate 5 in Kern County, roughly 60 miles north of Los Angeles, TRCC provides occupants of the one-year-old building with the ability to reach 90 percent of California consumers by truck within a single day.
“The appeal of Tejon Ranch Commerce Center includes the availability of development sites for distribution, manufacturing and e-commerce operations in a location that serves not just Southern and Northern California, but 11 western states as well,” Brett Tremaine, senior vice president with Majestic Realty, told Commercial Property Executive.
L’Oréal USA leased 5337 Wheeler on behalf of SalonCentric, the beauty products company’s professional salon distribution operation. Majestic expects the globally recognized L’Oréal name to be a big draw for TRCC.“[With the location] coupled with a tremendous labor pool, a strong logistical foundation and infrastructure, as well as support from local government, there’s no doubt that other companies will follow the lead of L’Oréal SalonCentric and take full advantage of all that Tejon Ranch has to offer,” Tremaine added.
John DeGrinis, senior executive vice president with Colliers International, represented the TRCC ownership in the lease transaction, while Craig Peters, executive vice president with CBRE, stood in for L’Oréal USA. In March 2018, Dollar General became the first business to commit to 5337 Wheeler, signing a lease for 240,000 square feet.
Kern County’s industrial market closed out 2017 with an average vacancy rate of roughly 4.3 percent, per a Colliers report, which also notes that demand will drive down vacancies in the healthy and active market through 2018. TRC is prepared to answer the call for additional Class A industrial space in the area.
“The Tejon Ranch Commerce Center has about 15 million square feet of entitled space available for lease or purchase, so we certainly have room to accommodate more companies that have outgrown their existing space,” Joseph Rentfro, executive vice president of real estate with Tejon Ranch Co., told CPE. “And with this building successfully leased, you can expect to see additional buildings like this one going up at TRCC in the near future.”
Link to Original Article: https://www.cpexecutive.com/post/loreal-inks-240-ksf-lease-in-southern-california/