Fashion Nova Bolsters LA Logistics with 133K SF Industrial Lease

Fashion Nova Bolsters LA Logistics with 133K SF Industrial Lease

Fast-fashion retailer Fashion Nova is significantly expanding its presence in the Southern California logistics market. The company has signed a lease for a 132,888-square-foot warehouse at 12301 Hawkins Street in Santa Fe Springs, according to data from CBRE Group, Inc. This transaction increases the retailer’s warehouse footprint in the Santa Fe Springs area by approximately 33%.

The property, situated within the Heritage Springs Business Park, is owned by New York-based real estate investment manager Clarion Partners. The facility spans a 5.4-acre site and includes 12,004 square feet of office space. Features of the recently renovated asset include 30-foot clear heights, 18 dock-high doors, and two ground-level doors, as detailed in a marketing brochure from Jones Lang LaSalle Incorporated.

This lease contributes to a resurgence in leasing activity across Los Angeles County’s industrial sector. Market data indicates that leasing volume reached 15.7 million square feet during the second quarter, a 40% increase compared to the previous year. The market recorded its third consecutive quarter of positive net absorption, totaling 2.8 million square feet, following a period of stagnation.

Despite increased leasing velocity, landlords are navigating a landscape of declining rents. The average asking rent in the region has fallen to $1.19 per square foot per month, representing a 7% decrease year-over-year and a 32.4% drop from the second quarter of 2023. However, vacancy rates have tightened, dipping 22 basis points from the first quarter to settle at 5%. The Mid-Counties submarket, which encompasses Santa Fe Springs, reported 1.1 million square feet of positive absorption during the quarter with an average asking rate of $1.23 per square foot.

What to watch

• Future leasing reports from CBRE Group, Inc. regarding L.A. County industrial net absorption trends.
• Earnings updates from Jones Lang LaSalle Incorporated for insights into industrial brokerage activity.
• Clarion Partners’ occupancy rates and rental income for the Heritage Springs Business Park.

Source: original release