USPS nears lease for 100K sf distribution center in City of Industry

Package hub would add to Postal Service’s 130 locations across LA County

U.S.P.S. close to a deal to lease a warehouse in City of Industry for a package distribution center (iStock, Google Maps)
U.S.P.S. close to a deal to lease a warehouse in City of Industry for a package distribution center (iStock, Google Maps)

The United States Postal Service is nearing a deal to lease a warehouse in City of Industry that it will use as a package distribution center, The Real Deal has learned.

The Postal Service is expected to take the 109,295-square-foot complex at 321 Vineland Avenue, sources said. USPS declined to comment.

The landlord, Maxim Lighting, is a lighting manufacturer that operates in a property next door, records show.

The deal comes as e-commerce continues to drive strong demand for industrial space across the Los Angeles region. And countywide, nearly 3 million square feet of industrial space was under construction as of midyear.

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L.A. County vacancy rates are also extremely low, with some submarkets under 1 percent, according to JLL. In the San Gabriel Valley, just 1.5 percent of total distribution inventory was vacant, with an average asking rent price of $0.85 per square foot.

The Vineland Avenue property would be among USPS’ largest across the county. feet near LAX from the City of Los Angeles, and around 231,000 square feet at a Prologis-owned warehouse in Carson.

USPS owns 82 properties and leases another 130 facilities across the county, according to agency data. It is one of the largest land owners of a logistics network, with more than 33,000 facilities spanning over 300 million square feet nationwide. The agency has in recent years begun a shift toward more leasing.