Lee & Associates- LA North/Ventura Closes Nearly $3 Million in Lease Transactions for Integra Beauty, Inc. and Formology
E-Commerce Consumer Demand Driving Beauty Companies to Expand into Industrial Spaces
Calabasas, CA – December 7, 2020 – Lee & Associates – LA North/Ventura, a leading commercial real estate brokerage firm, has closed two lease transactions for Integra Beauty and Formology Lab with an aggregate value of approximately $3 million, both for expansion facilities in Chatsworth, California. Scott Caswell, SIOR, Managing Director - Calabasas, and Erica Balin, principals of Lee & Associates - LA North/Ventura, represented the tenant and the landlord for the Formology transaction, and the tenant for Integra Beauty in the transactions.
“E-commerce has taken off in the personal care and beauty industry and for some companies, this requires more warehousing and distribution,” said Caswell, who has more than 25 years of experience in this industry. “Evolving consumer expectations make last mile delivery a crucial aspect for these companies and suppliers. We’re here to help our clients in the beauty industry and beyond, find convenient locations to address the need for reducing the delivery and fulfilment times in a thriving e-commerce environment.”
The team also recently completed the sale of a $6.5 million industrial building to Lab3 Cosmetics, which was announced last week.
Some beauty-product brands and retailers with inventory and shipment operations ready to scale up are reporting e-commerce sales twice as high as their pre-COVID-19 levels, according to a recent McKinsey report “How COVID-19 is changing the world of beauty.”
Additionally, the McKinsey report reveals re-COVID-19 trends will likely accelerate, with direct-to-consumer e-commerce, such as brands’ websites, shoppable social-media platforms, and marketplaces becoming more important. Across the globe, consumers indicate they are likely to increase their online engagement and spending.
“The location of the San Fernando Valley, given its ease of access to several major freeways, makes is a prime choice for companies seeking distribution access points into Southern California,” said Balin.
These two leases included:
• Integra Beauty, Inc., a leading beauty packaging company, located in Northridge, CA, leased an approximately 48,000 square-foot space at 20310 Plummer Street in Chatsworth for an aggregate value of $1.6 million. the company, which already has a location in Ohio, will be using this space for additional warehouse and distribution space to serve their West Coast market.
• Formology Lab, a leading, full-service private label and contract manufacturer, leased 21,809 square feet at 9174 Deering Ave in Chatsworth for an approximately $1.25 million. The company relocated to this location to expand, modernize and design the space for their makeup clients. Lee represented both Formology and the landlord for North Park Industrial Center, which is a 1.3 million square-foot industrial park.
“More creative and industrial space is needed to support the innovation coming out of these popular beauty brands,” adds Caswell. “We’re excited to represent and bring some of these incredible spaces to life.”
About Lee & Associates - LA North/Ventura, Inc.
Celebrating 40 years of leadership excellence in commercial real estate, Lee & Associates is the largest broker-owned firm in North America with locations across the U.S. and Canada. With more than 900 brokers nationwide, Lee & Associates provides a wide range of specialized commercial real estate services on a local, regional and national level. Lee & Associates-LA North/Ventura, Inc. provides industrial, office, retail and multifamily/investment and development land brokerage services across the San Fernando Valley, Conejo Valley, Antelope Valley and throughout Ventura County. For more information, visit lee-associates.com or follow us on Facebook, LinkedIn and Twitter.