An Escondido industrial park has been spruced up and given a new name in a market so tight that space is nearly impossible to find.
Formerly Escondido Business Center, the industrial park at 500-938 South Andreasen Drive has been rebranded Origin by Stockbridge, a real estate investment firm based in San Francisco.
The 255,769 square-foot center is about 96% leased with more than 70 tenants, said Chris Baumgart, a senior vice president of the commercial real estate brokerage JLL.
Baumgart and Steven Field, a senior vice president at JLL, are heading leasing of the center.
Redesigned in partnership with Clear Signs, Certa Painting and Pacific Green Landscaping, the $1.5 million renovation included new signs, graphics, painting and sustainable landscaping.
The center has served as an incubator.
“That name kind of originated from a lot of companies getting their start here in the business park,” Baumgart said. “It’s kind of the home base for a lot of companies, especially startups, small businesses.”
Industrial space in North County in general is at a premium.
“Escondido has been very tight with less than 3% vacancy and limited new development, causing rents to surpass records set back in the mid-2000s,” Baumgart said.
“Availability-wise, you can’t find a building over 10,000 square feet,” Baumgart said. “What we’re seeing right now hasn’t been seen before. For big blocks of space, there’s only a handful to choose from.”
Along with rising rents, Baumgart said industrial property prices are rising at an annual rate of 15% to 20%.
“You’re seeing prices surpass what we’ve ever seen on record,” Baumgart said. “There are more companies out in the market looking to buy than to lease and there’s no product, there’s no supply.”
Driven by the rapid rise in e-commerce that started before the pandemic and accelerated since, retailers looking for warehouse space to accommodate next-day delivery service are a key demand driver.
The commercial real estate brokerage Cushman & Wakefield reported that retail tenants are looking for 1.2 million square feet of industrial space over the next 24 months, leading all market segments in gobbling up industrial property.
Executive Managing Directors: Terry Fancher and Sol Raso
Headquarters: San Francisco
Business: Real estate investment
Number of employees: 108
Annual revenue: $23 million
Notable: Stockbridge has about $21.7 billion of assets under management.