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Industrial Highlights
Inland Empire | Q3 2014
The overall health of the market is favorable with the
most demand seen in the under 400,000-square-foot
segment. Although construction volumes are back to
peak levels, net absorption is positive and tenant
requirements remain strong.
Leasing activity
• NFI, specializing in logistics, transportation and distribution, committed
to a 120-month renewal for 1.0 million square feet at 16045 Mountain
Avenue in Chino.
• NFI also inked 120-month renewals for 489,741 and 389,358
square feet at 15730 Mountain Avenue and 15704 Mountain Avenue in
Chino, respectively.
• Staples signed a 60-month renewal for 450,000 square feet at 1500 S.
Dupont Street in Ontario.
• Emser Tile committed to a 60-month renewal for 432,397 square feet
at 5300 Shea Center Drive in Ontario.
• Leapfrog, an educational entertainment company, signed a
61-month renewal for 410,800 square feet at 13479 Valley Boulevard
in Fontana.
• Taylored Services, a retail distribution and e-commerce solutions
provider, inked a 64-month direct lease for 400,000 square feet at
13950-14050 Norton Avenue in Chino.
• Central Garden & Pet signed a 38-month renewal for 395,954 square
feet at 851 N. Vintage Drive in Ontario.
• Pratt Industries, offering recycled packaging, committed to a
63-month direct lease of 223,170 square feet at 1200 S. Etiwanda
Avenue in Ontario.
• Amazon.com inked a 120-month direct lease for 704,115 square feet
at 2125 San Bernardino Avenue in Redlands.
• Federal Mogul, suppliers of original and aftermarket automotive
products, signed a 126-month direct lease for 522,772 square feet at
22750 Cactus Avenue in Moreno Valley.
• Yakima Products, specializing in car racks, committed to an 87-month
direct lease for 209,573 square feet at 6677 Box Springs Boulevard
in Riverside.
• Organize It All, an online retailer of home organization and storage,
signed a 60-month direct lease for 155,679 square feet at 250 Airport
Circle in Corona.
Net absorption
Leasing volume
Sales prices
Sales volumes
Arrows represent change from prior quarter
Tenants in the market
• Smart & Final is in the market for up to 1.2 million square feet.
• Medline is in the market for up to 1.0 million square feet.
• QVC is in the market for up to 1.0 million square feet.
Sales activity
• TIAA-CREF purchased a portfolio of two properties, 5642 and 5648
Ontario Mills in Ontario, totaling 435,283 square feet from Western
Realco for $37.9 million ($87 per square foot).
• Guthrie Development Company acquired the 220,190-square-foot
Airport Distribution Center, located at 1500-1590 Milliken Avenue in
Ontario, from Panattoni / CalSTRS for $20.3 million ($92 per square
foot). The complex was 93 percent occupied by 28 different tenants at
the time of sale.
• Ngy Stone & Cabinet, Inc. bought a 125,322-square-foot property at
14275 Telephone Avenue in Chino from Blackridge / Verde for $10.7
million ($85 per square foot). The property was vacant at the time of
sale and the buyer acquired the building for expansion purposes.
• Industrial Property Trust purchased an 830,750-square-foot
investment property at 6207 Cajon Boulevard in San Bernardino from
Hillwood for $56.5 million ($68 per square foot). The property was
sold vacant.
Sales activity continued
• The Najjar Family bought a 600,000-square-foot investment property,
Beaumont Logistics Center located at 630 Nicholas Road in
Beaumont, from CT Realty for $30.0 million ($50 per square foot). The
property was fully leased on triple-net terms to a fitness equipment
supplier at the time of sale.
• Stockbridge Capital group acquired Redlands Corporate Center,
comprised of 12 buildings totaling 403,938 square feet located in
Redlands, for $27.5 million ($68 per square foot) from The Muller
Company. The aggregate occupancy was 85.8 percent at the time of
sale and escrow time was approximately 60 days.
Construction activity
Developers continue to capitalize on the Inland Empire, a dynamic
market that leads the country with speculative and build-to-suit
construction activity. Peak level construction has returned with many
large-scale projects well underway, including Goodman Birtcher (1.6
million square feet), Majestic (1.2 million square feet), IDI / Brookfield
(1.0 million square feet), DCT (927,000 square feet), CapRock Partners
(900,000 square feet) and Prologis (809,000 square feet).
For more information, please contact:
Melineh Soukiasian
Research Analyst
Los Angeles
+1 (213) 239 6266
[email protected]
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