PGIM Real Estate has a new tenant in Van Nuys.
Jocott Brands, a personal care product manufacturer, signed a long-term lease for 64,100 square feet at the Lewis Business Center at 8000 Woodley Avenue. The lease, worth over $6 million, included customizing the Class-A space for the company, according to CBRE, which represented PGIM in the deal.
The lease accounts for more than two-thirds of the rentable square footage of the property, which PGIM paid $6.6 million for in 1999.
CBRE’s David Harding, Greg Geraci, Billy Walk, and Matthew Dierckman represented PGIM. Scott Caswell of Lee & Associates represented Jocott Brands, which is based in Van Nuys.
Industrial real estate is booming around the country, even in Los Angeles where construction costs keep climbing. Companies are willing to pay the high rent costs, which make the pricey development profitable. Rents are 27 percent higher than the $170 per square foot needed to break even on development costs in L.A. Lease rates in the Greater L.A. area are increasing at a pace of $3.89 per square foot year over year, and vacancy is at low 1.2 percent, according to CBRE.