484,000-SF Lease Brings ProLogis’ 6 MSF Inland Empire Complex to Full Capacity
- Jan 30, 2009
All space has been claimed at ProLogis’ 5.9 million-square-foot Kaiser Commerce Center in Fontana, Calif., now that a third-party logistics provider has committed to a long-term lease for the last 484,000 square feet of space at the sprawling industrial property. Consisting of nine structures built between 2002 and 2004, Kaiser Commerce Center (pictured) sits about an hour northeast of the Ports of Los Angeles and Long Beach. “One of the best attributes of the Inland Empire is its location,” Mike Del Santo, first vice president and market officer at ProLogis, told CPN. “The area is crisscrossed by Interstates 10 and 15 and the Pomona freeway, providing excellent regional access to Los Angeles, Orange County and San Diego–as well as Arizona and Nevada.” ProLogis acquired most of the structures in 2005 and developed the remaining few. The newly signed tenant will occupy part of Building 7, which ProLogis expanded by 265,000 square feet to a total of nearly 872,400 square feet in August 2008. ProLogis’ successful leasing of the remaining vacant space at Kaiser Commerce Center to a single tenant is quite a significant achievement considering the state of the industrial market in the Inland Empire. “The last couple of quarters of 2008 were really bad,” Kerry Cole, executive vice president with Daum Commercial Real Estate Services, told CPN. “What we’re seeing now is more vacancies coming online, more companies looking to downsize and sublease excess space, and building owners making more concessions. There’s a buttoning down the hatches attitude to getting through the next year or two. We hope by the end of the year we’ll start to see that light at the end of the tunnel, but for the current time, it’s kind of dark.” ProLogis, however, managed to buck the trend. “While the current economic environment is challenging, ProLogis is well positioned in the market,” Del Santo said. “Our long-term focus in the Inland Empire remains positive, knowing that the most attractive attributes about the market stay intact, regardless of the current economic climate.” Headquartered in Denver, ProLogis is the largest owner, manager and developer of distribution center faculties in the world, with a portfolio of 548 million square feet of owned and managed space and projects under development. The company’s position as leader holds in California, too, where its portfolio encompasses 45 million square feet in 198 distribution centers.