Goodman is building a 1.5 million-square-foot spec logistics center in northern Orange County that will target e-commerce tenants.
The Australia-based industrial developer started work on the massive, four-building facility at 2099 Orangethorpe Ave. in Fullerton, eyeing a mid-2022 opening, it said.
With a boom in e-commerce amid the pandemic, industrial real estate is at a premium across the U.S. In Los Angeles, the vacancy rate for warehouse space is just 1.8 percent, the tightest in the U.S.
“It’s a supply-constrained environment with a huge population,” Goodman’s Lang Cottrell said. He added the firm was “confident” demand exists.
Goodman placed big bets on L.A.’s industrial market in 2019, buying up the Fullerton site, an Atwater Village site for around $130 million, and a 1.1 million-square-foot former Boeing property near Long Beach for more than $200 million. The firm plans to redevelop the former Boeing property into retail and industrial space. Goodman also owns a massive logistics center in El Monte — a total of 17 properties across the U.S.
Goodman has partnered with Canada Pension Plan Investment Board on many of the developments. In the decade-long deal, Goodman has invested 55 percent and CPP has provided the rest to develop industrial assets across North America. The two firms contributed an additional $2.5 billion into the partnership last year.