AMB Scores 900,000SF Property in Tight Inland Empire Market
- Jan 16, 2008
San Francisco-based AMB Property Corp. has snagged a premier distribution facility outside of Los Angeles in the Inland Empire, one of the most highly coveted industrial markets in the U.S. The company has amended the name of the 900,000 square-foot property, which will now be known as AMB Loma Grande Distribution Center.AMB Loma Grande, sited in a prime spot off the well traveled I-15 and within close proximity to Ontario International Airport, offers a highly desirable position within close reach of the bustling Ports of Los Angeles and Long Beach. Right now, Wal-Mart Stores Inc. is benefiting from the advantageous location as the property’s sole tenant. With the acquisition of the fully-occupied facility, AMB has increased its already strong foothold in the Inland Empire, bringing its portfolio there up to an aggregate 22 million square feet. The Inland Empire is among the top industrial markets in the country, featuring low vacancy rates–though having increased a bit over the last year, they still averaged a low 5.2 percent at the close of 2007, as per a report by real estate services firm Grubb & Ellis Inc.–and high demand. With the need for space being so strong, real estate developers are not alone in the bid to construct massive industrial facilities on the limited amount of land that remains available in the area, and to snap up existing properties; tenants have gotten in on the game, too. Stater Bros., having taken advantage of re-use efforts at the former Norton Air Force Base, opened its 200-acre corporate campus prior to year’s end and next month the grocery company will begin shipping from its new 2.1 million square-foot distribution facility, which is the largest single-roof distribution center in the country’s supermarket industry. Last November, Whirlpool Corp. acquired the new 1.7 million square-foot Perris Distribution Center, the largest speculative industrial property ever developed in the U.S. And third-party logistics provider Weber Distribution signed a 10-year lease in October for 564,000 square feet of AMB’s 1.3 million square-foot AMB Redlands Distribution Center.The good times, however, are not to the Inland Empire. For the most part, Southern California, in general, is experiencing high demand; AMB’s portfolio in the region boasts an average occupancy level of approximately 98 percent, as of the close of the third quarter of 2007. A top global developer and owner of industrial real estate, AMB Properties acquires and develops properties in leading hub and gateway distribution markets across North America, Europe and Asia. As of the close of the third quarter last year, the company’s portfolio of owned, partially owned, and in-progress assets accounted for a total of about 141 million square feet 13 countries. AMB stock opened today at $50.38.