Lee & Associates LA North/Ventura’s President Mike Tingus and Grant Fulkerson, SIOR, Managing Director, Principal recently sold a key industrial property located at 3500 Willow Lane in Thousand Oaks, California spanning 104,267 square feet for a record $39,750,000. The two-story structure was sold by Willow Hurst, LLC to HRL Laboratories, LLC. Lee & Associates – LA North/Ventura represented the seller. The buyer was represented by Mazirow Commercial, Inc.
“This sale is indicative of a continued competitive industrial market with low vacancy rates with limited supply and high demand, particularly in the life sciences arena,” said Tingus. “Industrial remains our strongest asset class in our commercial portfolio. High construction costs translate to significant value for buildings with an existing infrastructure and we can expect to see continued demand into 2023 and beyond.”
Lee & Associates LA North/Ventura’s Q3 Market Report recently released confirms this data with a meteoric rise in the industrial sector. The report highlighted a record-setting quarter which became a normal occurrence for the industrial property type since the start of the pandemic with multiple records set revealing the gap between high demand and low supply is getting even wider. The third-quarter vacancy rate was only 1.8 percent, a full percentage point lower than the second quarter’s rate of 2.8 percent, and by far the largest quarter-over-quarter fluctuation ever recorded in the market. While new inventory combined with decreasing reliance on e-commerce would seemingly stabilize market momentum, inventory continues to be absorbed as soon as it’s available.
“In addition, the buyer wanted to occupy the space as an owner/user. We were able to negotiate an early lease termination – which was executed during escrow – to allow them to move into the building.” Tingus said.
Located in the Conejo Valley, which includes Thousand Oaks, Newbury Park, Westlake Village, Oak Park, Agoura Hills, Lake Sherwood and Calabasas, the location provides the perfect hub to house life sciences’ continued growth, including its proximity to a range of amenities including world-class shopping and entertainment areas, top-ranked public and private schools, and open spaces.
