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News release

HUNTINGTON BEACH, CA

Mitsubishi Electric Automotive's Move Illustrates Continued Demand of OC Industrial Sweet Spot

JLL completes 167,778 SF industrial lease with in Huntington Beach


HUNTINGTON BEACH, CALIF., March 10, 2014 – JLL represented Mitsubishi Electric Automotive America in a new 10-year, 167,778-square-foot industrial lease at 5800 Skylab Road in Huntington Beach.  Mitsubishi Electric Automotive will occupy the space for its regional headquarters and United States west coast manufacturing and distribution.  The Mitsubishi facility provides a consolidation of three Southern California facilities under one roof, with major expansion capability for the next 10 years.

JLL Orange County team members Louis Tomaselli and Mitch Lundquist represented Mitsubishi Electric Automotive.  The landlord, Morgan Stanley was represented by CBRE.

“After a two year comprehensive market analysis, Mitsubishi Electric Automotive decided that 5800 Skylab Road was the best option because it was in close proximity to its employee base, provided a superior corporate image, and both manufacturing and logistical building features,” said Lundquist.  “With almost all indicators pointing to continued improving industrial market conditions, JLL was able to negotiate win-win terms for both Mitsubishi and Morgan Stanley to enjoy a long-term, collaborative relationship."

Lundquist's partner in the transaction, Louis Tomaselli, went on to say that this lease transaction represents continued demand for space in Orange County's industrial "sweet spot,” consisting of properties in the 100,000 to 200,000-square-foot range.  Demand to lease or purchase industrial space in this range is becoming the catalyst for the market’s rent and sale price growth as available options decline with each passing quarter. With several pending “sweet spot” leases carrying over into the first quarter of 2014, it is expected that continued absorption, of what little space is available, will lead to accelerated rent growth by year’s end.

“We are confident that this new facility will provide Mitsubishi Electric Automotive more efficient and effective manufacturing of parts, as well as supply chain and logistic savings of deliver to customers.,” said Tracy Gaddis, General Manager, Mitsubishi Electric Automotive.

JLL Research noted that prior to the completion of the Mitsubushi lease, vacancy rates in Huntington Beach and the West Orange County submarket were the highest in the county, but taking into account the new absorption the Q1 2014 results should report single digit vacancy in Huntington Beach, and close to prerecession low vacancies in Orange County.

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About Mitsubishi Electric Automotive America
Mitsubishi Electric Automotive America, Inc., a U.S. affiliate company of Mitsubishi Electric Corporation, was established in 1979 to serve the North American automotive, heavy duty truck and coach business. Mitsubishi Electric Automotive America offers a wide range of products and services, including engineering, manufacturing, sales, marketing, distribution and service of electrical and electronic systems and components for automobiles, heavy trucks, buses and commercial engine manufacturers, serving both OEMs and the aftermarket. Additional information is available at the following websites: Mitsubishi Electric Automotive America www.meaa-mea.com; Mitsubishi Electric heavy duty products www.specmystarter.com; Mitsubishi Electric’s Diamond GardTM warranty program www.diamond-gard.com.

In addition to automotive electrical components, Mitsubishi Electric US group companies’ principal businesses include projectors, semiconductor devices, factory automation products, heating and cooling products, elevators and escalators, solar modules, electric utility products, and large-scale video displays for stadiums and arenas. There are 50 locations throughout North America with approximately 3,600 employees. 

About JLL
JLL (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $4 billion, JLL operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $47.6 billion of real estate assets under management. For further information, visit www.jll.com.