VICTORVILLE — Despite layoffs and soaring unemployment brought on by the COVID-19 pandemic, business looks promising at Southern California Logistics Airport.
Stirling Capital Investments recently announced the completion of major lease transactions with The Boeing Company, United Furniture Industries and ComAv Asset Management at the Victorville-based SCLA.
Stirling officials said the agreements with the companies, which currently operate at SCLA, highlight the operational, workforce and expansion benefits to high-caliber companies that locate to the regional logistics hub.
Boeing signed a 66-month lease with Stirling for 60,396 square feet of space in the building located at 13644 George Avenue. The company will complete machine tooling at the facility — work that was being done in Orange County — for its aircraft maintenance programs to support existing Boeing operations at SCLA.
In a statement, Stirling COO Brian Parno said Boeing said he's "thrilled to welcome the company and its workforce as a direct tenant in our Business Center."
"This lease will notably bring another influx in quality jobs to the local region and is a perfect example of our ability to provide corporate America with room to grow and to meet changing long-term space needs in several different platforms," Parno said.
Mark Kegans, of Newmark Knight Frank, represented the tenant and Anita Tuckerman, Stirling's vice president of asset services, completed the transaction for the landlord, the statement said.
Last year, Victorville officials announced they had executed a lease agreement with Boeing for an additional 85,000 square feet of hangar space at SCLA, the Daily Press reported.
The hanger is used by Boeing in its expansion of flight testing operations for new aircraft, including the Boeing 737 Max and Boeing 777.
Because of COVID-19, the airline industry has taken a massive financial hit. On April 29, Boeing President and CEO Dave Calhoun issued a letter to employees addressing aerospace market realities during the global pandemic.
"We have begun taking action to lower our number of employees by roughly 10% through a combination of voluntary layoffs, natural turnover and involuntary layoffs as necessary," Calhoun said.
He said the aviation industry will take years to return to the levels of traffic seen before the pandemic, adding that Boeing must prepare for the new reality. Some of that preparedness includes the reduction of commercial airplane production rates.
"The demand for commercial airline travel has fallen off a cliff, with U.S. passenger volumes down more than 95% compared to last year," Calhoun said. "Globally, commercial airline revenue is expected to drop by $314 billion this year."
Looking ahead, Calhoun said the company would "continue to invest in the future."
"We will continue to focus on our values, and to drive safety, quality, integrity and operational excellence in everything we do," Calhoun said.
Stirling also announced the renewal of a lease for a 505,000-square-foot facility with United Furniture Industries.
UFI began its furniture manufacturing operations at the facility in 2011 and renewed their lease, effective November 2020, for an additional three years, according to Stirling's statement.
UFI currently employs more than 300 full-time workers at the facility, which serves as the company's West Coast base of operations.
"With options to maintain their operations at SCLA through 2028, this renewal is a signal that this location continues to work optimally for their manufacturing and distribution," Parno said.
Joseph W. Brady, of The Bradco Companies, represented UFI and Dedrik Pharis and Jay Dick of CBRE represented Stirling in the transaction.
Stirling also reported that it successfully negotiated terms with ComAv Asset Management for a six-year lease extension for the company's corporate headquarters.
ComAv provides aviation maintenance and asset management services. The firm's business at SCLA has expanded significantly following the COVID-19 outbreak, with ComAv Asset Management now hosting and maintaining over 200 airplanes onsite, Stirling said.
The transaction was negotiated by SCI directly with ComAv Asset Management's ownership group.
Tuckerman said the leases demonstrate "phenomenal tenant retention" at SCLA, which benefits "an eager local workforce."
Rene Ray De La Cruz may be reached at 760-951-6227, or by email at [email protected]. Follow him on Twitter @DP_ReneDeLaCruz.
———
©2020 Daily Press, Victorville, Calif.
Visit Daily Press, Victorville, Calif. at www.vvdailypress.com
Distributed by Tribune Content Agency, LLC.
