Dedeaux Properties Breaks Ground on $38 Million Industrial Development in City of Industry

CITY OF INDUSTRY, Calif. - Aug. 2, 2017 - PRLog -- Industrial investment, development and management firm Dedeaux Properties has broken ground on its 246,543-square-foot Echelon Business Park in the City of Industry, with construction expected to be complete in the first quarter of 2018.

"With a lack of infill land to build modern warehouses, coupled with strong demand from a vibrant regional economy with access to the largest ports in the country, there is a near-chronic shortage of product for the small- or mid-sized industrial tenant or buyer," said Brett Dedeaux, President at Dedeaux Properties.

The Googles and the Amazons are well served as builders scale up for the large distribution centers of modern e-commerce. Consequently, one million-square-foot warehouses dot the Inland Empire to handle international trade and serve the Southern California market.

Yet the vast bulk of businesses in Southern California are small- and medium-sized, and need warehouse, factory or R&D space as well. Many start-up enterprises—restaurant-supply shops, tech entrepreneurs, smaller importers-exporters, custom-furniture makers and the like—require spaces under 50,000 square feet, or even less. In 2015, the latest year for which figures are available there were 430,948 business enterprises in Los Angeles County, but only 5,390 had more than 100 employees, according to a report by the California Employee Development Department.

"There is a hole in the warehouse market, no product between 20,000 and 40,000 square feet," says Dennis Sandoval, broker with DAUM Commercial Real Estate who is representing Dedeaux Properties on the Echelon development. "Our market research indicates vacancy rates of less than 1% for 15,000- to 40,000-square-foot buildings in the San Gabriel Valley, where Echelon Business Park is being developed."

Moreover, much of the existing smaller warehouse space in Southern California is older stock, lacking the amenities of minimum 24-foot-high ceilings, ample truck turning radius, adequate electric power, dock-height loading, or sprinklering, according to Sandoval.

Located at 801 – 821 Echelon Court, the $38 million development benefits from its easy access to I-10, I-605 and the 60 and 57 Freeways. The Echelon Business Park's seven free-standing buildings, range between 27,438 square feet and 43,166 square feet, and include two-story office space, ample dock-height loading and configurations for loading shipping containers, all inside a modern, secured campus with pride of ownership design and image.

With the economy growing again and such a tight market segment, these new state-of-the-art industrial buildings will draw a premium in value. Overall, median prices hit record high pricing in Q1 2017 in Los Angeles County, up 57.8% from 2010, reports DAUM.

"It takes planning and execution to bring many medium-sized warehouse units to market, and it is more expensive on a per-square-foot basis than developing larger product, but the demand is certainly there to justify the effort," added Ben Horning, Director of Development at Dedeaux Properties. "I just hope we can find more land to build more projects like Echelon Business Park."

About Dedeaux Properties

Los Angeles-based Dedeaux Properties, LLC  (http://www.dedeauxproperties.com) (http://www.dedeauxproperties.com), and its affiliated Dart Entities logistics platform, has a successful history of more than 50 years  in the development, acquisition and management of industrial properties located primarily in California and the Greater Chicago area.  With a portfolio of more than six million square feet of distribution, transportation and refrigerated industrial space, the firm has a current development and acquisition pipeline exceeding two million square feet.