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Lease Renewals Remain Favorable Amongst Industrial Tenants in the San Fernando Valley

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Los Angeles, Calif. December 8, 2021 – Industrial property experts are seeing a common thread across Los Angeles' markets, most recently in the San Fernando Valley, where lease renewals are top-of-mind amongst tenants. Several recent transactions from Colliers' Los Angeles-based brokerage team, comprised of executive vice presidents Greg Geraci, David Harding, Matt Dierckman, and Billy Walk, speak to the rising trend.  

Over the last few weeks, the team negotiated two multiple-building lease renewals of large-scale properties. In Sun Valley's Shadow Mountain Industrial Park lease renewal, Colliers negotiated a deal on behalf of the landlord, CIM Group. At the same time, Cox Real Estate Services, Inc.'s Greg Cox represented the tenant, Schecter Guitar Research, Inc., Made up of three separate units in the park (10937, 10939, and 10953) Pendleton Street; the total renewal equaled 47,634 square feet. The second lease renewal, wherein the Colliers team and Greg Cox teamed up to represent the landlord, ParRam LLC is situated in Chatsworth and includes 20320 and 20350 Prairie Street and 9315 Oso Avenue, a combined total of 155,529 square feet.  

"The historically low availability of San Fernando Valley industrial buildings has led to notably higher lease rates and lack of available properties," said Greg Geraci. "It's as tight of a market as we've seen in thirty years. As a result, the lack of relocation alternatives has compelled many tenants to renew their existing leases." 

During the last two quarters, the San Fernando Valley has seen a dramatic decrease in the vacancy rate, from 1.5 to 0.6 percent, and availability, from 2.1 to 1.4 percent. Due to the lack of inventory and strong demand, lease rates have increased 6.1 percent quarter-over-quarter overall and significantly higher in areas with the highest demand, such as Burbank and Van Nuys, and the market strongly favors landlords. 

"Both transactions in Sun Valley and Chatsworth indicate strong tenant preference for lease renewals, and our team certainly anticipates more of the same to appear across the market," commented Geraci.  

 

Media Contact: 
Leanne Daly 
PR & Communications Specialist | Southwest 
Leanne.Daly@colliers.com 
760-930-7941
 
 

About Colliers 
Colliers is a leading diversified professional service and investment management company. With operations in 66 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners, and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.3 billion ($3.6 billion including affiliates) and $45 billion of assets under management, we maximize property's potential and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers, or LinkedIn


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Greg Geraci

Executive Vice President

Los Angeles - Glendale

With over 30 years of real estate experience, Greg Geraci, has distinguished himself as one of the most influential Industrial Property Specialists in the Greater San Fernando and Santa Clarita Valleys.  Greg also actively represents firms in cities throughout the U.S. and abroad.  He has contributed his negotiation and creative marketing expertise in many of the most significant transactions in the area.

Greg’s deep market knowledge, vast relationship network, and intense focus on producing superior client outcomes has made him a leading dealmaker with an enormous base of repeat and new business. Greg and his partners, David Harding, Matt Dierckman, and Billy Walk, regularly execute over 100 transactions per year (in 2019 they represented 113 clients).   By working together, their team enjoys a dominant presence and awareness in the market.

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David Harding is an Executive Vice President at Colliers and an industrial expert across the North Los Angeles market. David specializes in the leasing and sales of industrial properties. Alongside partners Greg Geraci, Matt Dierckman and Billy Walk, David works to problem solve for owners, developers, investors and tenants in today’s dynamic business landscape. 

With more than 30 years of experience, David has been involved in over 3,000 transactions, solidifying him as a valued advisor among his colleagues and within the brokerage community. His vast knowledge of the San Fernando Valley, Santa Clarita Valley, Simi Valley and Moorpark markets has played an instrumental role in bringing value to his clients. 

David is a forward and strategic thinker, providing his clients with the appropriate tools to make the best decisions throughout the negotiation process. He is adept at offering streamlined processes to assist in reconfiguring older industrial sites into value-add opportunities, as well as tenant and investment consultation encompassing new, state-of-the-art construction. 

A California native and UCLA graduate, David spent his entire real estate career at CBRE as an esteemed North LA market advisor before joining Colliers in 2021. He is also a dedicated member of the Society of Industrial and Office Realtors (SIOR) and Past President/16-year Board member of the American Industrial Real Estate Association (AIR). 

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Matt Dierckman

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Matt Dierckman specializes in leasing, purchasing, and disposition of industrial real estate in the Greater San Fernando and Santa Clarita Valleys. Matt provides his expertise (and 20 years plus of experience in real estate) to the region’s largest institutional landlords, business owners, asset managers, and developers.

Matt is a member of the Society of Industrial and Office Realtors (SIOR) and with more than 3,400 members in 686 cities and 38 countries, SIOR represents today's most knowledgeable, experienced, and successful commercial real estate brokerage specialists.

Having grown up in the Santa Clarita Valley, and returning to raise his own family, Matt has a unique and deep knowledge of the market and vast relationship network of business owners and deal makers. Matt and his team (David Harding, Greg Geraci, and Billy Walk) regularly execute over 100 transactions per year and in 2020 represented over 140 transaction sides. By working together, the team enjoys a dominate presence in the market and produces superior results for their clients. Matt Dierckman is known for producing timely, win-win outcomes for his clients to which he has consistently received awards and recognition throughout his career.

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Billy Walk

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With nearly 20 years of professional experience, Billy Walk is a top producer on one of the most prolific industrial specialty teams in the San Fernando and Santa Clarita Valleys. Business generation, tenant, buyer, and landlord representation are among the many roles he serves on the team. Clients rely on Billy for individually tailored solutions to their real estate needs – and he consistently delivers this with speed, astuteness, and integrity. 

Billy’s approach when representing his clients is responsive, aggressive, analytical, and is always in the best interest of his clients’ long-term business goals.  When representing tenants and buyers, he is an expert at finding facilities that are both efficient and cost effective for businesses. When representing landlords, asset managers, and developers, he pulls from his deep market knowledge to provide a competitive edge in positioning properties for maximum exposure and quick results.

Billy and his team (David Harding, Greg Geraci, and Matt Dierckman) regularly execute over 140 transactions per year (in 2019 they represented 113 transaction sides). By working together, the team enjoys a dominate presence in the market and produces superior results for their clients.

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Leanne Daly

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