Inside Xebec’s Strategy to Increase the SoCal Industrial Supply
The Southern California industrial market is among the tightest in the country, and even the new supple under construction won’t be enough to satisfy the demand.
The demand for industrial space in Southern California is continuing to exceed the construction pipeline. In the Central L.A. markets, there is roughly 1 million square feet of industrial space under construction, and it will likely not be enough to deter occupancy and rental rate growth. Texas-based industrial developer Xebec is bullish that this trend has a long runway, and they are focused on growing a robust portfolio in the market to supply the demand. The firm has purchased 10 acres in the Mid-Counties submarket with plans to develop a 233,789-square-foot last-mile logistics facility.
“eCommerce continues to be a major factor driving industrial development to record highs as eCommerce sales have increased by 16% year-over-year and now account for 9% of all U.S. retail sales.” Jay Soni, EVP of acquisitions at Xebec, tells GlobeSt.com. “The success of the Los Angeles market is largely attributed to the dense population and amount of goods coming through the Los Angeles International Airport and the Los Angeles and Long Beach Port Complex, which is a key part of our development strategy. We are singularly focused on developing and redeveloping industrial facilities integral to the modern global logistics supply chain, and providing access to qualified investors seeking to capitalize on an investment opportunity in institutional-quality real estate.”
XebecTM is a privately held real estate investment platform that provides vertically integrated and full-service real estate acquisition, development, ownership, financing, leasing, property management and real estate investment management services. With over 30 years of industrial real estate development and investment operations, the company focuses on fulfillment, warehouse and distribution centers (bulk logistics), light industrial and infill/last-mile properties located primarily in U.S. coastal and inland logistics markets with major port and rail terminals, and trucking intermodal infrastructures. For more information, visit https://xebecrealty.com/.