Mitsubishi Electric Automotive America has leased 167,778 square feet of industrial space in Huntington Beach for its regional headquarters.
The deal will allow Mitsubishi to consolidate three existing Southern California facilities under one roof at 5800 Skylab Road, real state brokerage JLL said.
Terms of the 10-year deal with landlord Morgan Stanley were not disclosed, but real estate experts calculating Orange County industrial rents valued the transaction at close to $1 million a year, or $10 million total.
Mitsubishi decided the building on Skylab Road “was the best option because it was in close proximity to Mitsubishi’s employee base, provided a superior corporate image, and both manufacturing and logistical building features,” said broker Mitch Lundquist of JLL.
Demand to buy or rent industrial buildings sized between 100,000 square feet and 200,000 square feet is driving rent growth in the Orange County market, said broker Louis Tomaselli of JLL, who worked with Lundquist.
“We are confident that this new facility will provide Mitsubishi Electric Automotive America an opportunity to be more efficient and effective in the manufacturing of parts, as well as supply chain and logistic savings,” said Tom Mulholland, deputy general manager of Mitsubishi Electric Automotive America.
The move is set to be complete by September.
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