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Broadcast production firm inks big lease at Prologis industrial center
NEP Group, which also provides streaming services, adds to the strong demand for industrial space in LA
Heading into summer, demand for industrial property in Los Angeles remains hot.
Prologis, one of the largest industrial landlords in the county, has signed a production firm to occupy a 108,200-square-foot distribution center in Van Nuys.
It marks the fourth major industrial deal for the San Francisco-based real estate investment trust in the past month, after having already scored two other Van Nuys leases and a big tenant in the Inland Empire.
Pittsburgh-based NEP Group will occupy the Van Nuys distribution site at 7850 Ruffner Avenue. It features 10 loading docks, a gated yard, and is located near the Van Nuys Airport.
NEP provides outsourced services for major events. The rapid increase of streaming and production services has more than doubled annual demand in the L.A. region for industrial space for film and television series, according to a recent report by CBRE, which represented Prologis in the transaction. More than 1.7 million square feet of production space was leased in 2018, compared to 780,000 square feet in 2011.
San Francisco-based Prologis also recently secured two leases totaling totaling 255,400 square feet at other properties in Van Nuys, and signed a baby products company to a 10-year lease at a 450,000-square-foot warehouse in the Inland Empire, the industrial capital of the country.
Other recent industrial deals in L.A. include Rexford Industrial’s $118.1-million purchase of the 29-acre San Fernando Business Center in April, and a five-year lease CenterPoint Properties secured at its last-mile warehouse in Harbor Gateway North.