20802-20860 Plummer

Submarket Overview - Chatsworth is a relatively stable industrial submarket, with vacancies holding between 3-4% for most of this cycle. That stability is underpinned by barriers to development, including high land values and limited undeveloped land, that inhibit industrial development. No notable new industrial projects delivered this cycle, and the pipeline is similarly bare. Construction activity has been limited to renovations. Virtually all industrial inventory is clustered in the southeast portion of the submarket, along the rail line that bisects the submarket. The submarket experienced healthy net absorption over the past 12 months. One of the largest new occupants is Armorcast Products, which purchased a 146,000-SF industrial manufacturing building in July 2018. Other major tenants include Cosmetic Laboratories of America, which lease a 212,000 SF manufacturing facility, and packaging manufacturer The Foam Shop, which owns its 166,000 SF headquarters facility on Canoga Avenue. Chatsworth remains an appealing submarket for last-mile distribution because the area’s demographics are attractive and business activity is robust. The submarket is in proximity to entertainment, aerospace, and logistics industries. Market Overview - With vacancies below 3%, Los Angeles remains the tightest major industrial market in the country. Net absorption was soft in recent quarters, but that is largely a function of the low vacancy rate; there just isn't much vacant space left to be absorbed. Demand for industrial product in LA rarely wanes, thanks to the presence of both the nation's largest manufacturing sector and busiest ports of entry. Despite persistent demand, the development pipeline here tends to be very light. A paucity of developable land and an onerous permitting process combine to keep a lid on new construction even during periods of peak demand growth. Net deliveries reached a recent high of 4.4 million SF in 2017 but fell to 1.8 million SF in 2018, and even less is expected to deliver in 2019. In comparison, the Inland Empire, which is two-thirds the size of LA as measured by existing inventory, will likely have about 25 million SF of net deliveries per year from 2017 to 2019. While modern industrial assets are in high demand, one key motivating factor for investors is the potential for adaptive reuse. In some of LAs emerging job hubs, the potential for creative office conversion is adding value to an older, less functional industrial product.20844 Plummer offers major street exposure with strong street identification seeing approximately 9,200 daily trips in 2018. The property possesses generous sized offices, a conference room, reception, truck loading in the rear of the alley, a coffee/wet bar and an employee breakroom.