CBRE Group. Inc. and International Airport Centers, LLC. announced the wall tilting of the first phase of the new 1.3 million square-foot IAC Commerce Center in Valencia, California, one of the largest commercial projects in the region.

The Phase 1 buildings will vary from 93,600 square feet to 187,540 square feet in size, and build-to-suits are available as large as 560,000 square feet. CBRE’s Craig Peters and Doug Sonderegger are the leasing agents for the project.

The is a master-planned, 116-acre business park located adjacent to the Valencia Commerce Center and approximately 1 mile northwest of the Interstate 5 and Highway 126 interchange.

“Our development will offer the most state of the art industrial buildings in the LA North Region with 30’ minimum clear heights, upgraded ESFR fire protection systems, large truck courts and dock high loading,” said Michael Perlmutter, director of development leasing for International Airport Centers, the developer. “We look forward to completing Phase 1 and starting construction on the next phase.”

The project is surrounded by an established commercial and industrial market with more than 25 million square feet of industrial and office properties. The population within a 30-minute commute is more than 5 million, including residents of the Santa Clarita Valley, San Fernando Valley and Antelope Valley.

“The demand from e-commerce and third-party logistics companies has created a supply and demand imbalance in the Greater Los Angeles market,” said Peters. “This fact makes projects such as the IAC Commerce Center highly desirable and important to the region.”

He added “This project sits in a highly desirable area that is easily accessible by all major population centers in the area.”

Phase 1 of the project, which is expected to be completed by April, is located adjacent to the planned community of Newhall Ranch which will encompass more than 20,000 homes and 60,000 residents. It is surrounded by scores of restaurants and shops.

The Valencia industrial submarket, with a record low vacancy rate of 1.4 percent, has been one of the strongest in Southern California since the recovery. Vacant space in Valencia, especially for larger buildings, has become very limited and rental rates have been steadily rising to reflect this lack of supply. With limited land available for future development, demand is expected to continue to outpace supply in the foreseeable future.