Dedeaux Properties Inks 1 MSF Industrial Lease in Inland Empire
- Oct 02, 2019
Dedeaux Properties LLC has signed Cardinal Health to a 1 million-square-foot lease at 6275 Lance Drive in Riverside, Calif., in the Inland Empire. The health-care services and products company will occupy the new warehouse and distribution center, located within the 920-acre Sycamore Canyon Business Park, in its entirety under a long-term agreement.
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Dedeaux Properties relied on Ian DeVries and Chris DeVries of Colliers International for representation in the lease transaction, while Dan de la Paz stood in for Cardinal Health. The agreement comes just two months after Dedeaux Properties announced its joint venture acquisition of 6275 Lance from Hillwood Investment Properties in a $94.2 million deal. A state-of-the-art facility completed in 2018, 6275 Lance and the adjacent 361,400-square-foot building Dedeaux Properties is currently constructing are now branded as the approximately 1.4 million-square-foot Dedeaux Sycamore Canyon Distribution Park; the two-building project had previously been known as Magnon Business Park.
The second building at Dedeaux Sycamore is on schedule to deliver later this quarter. Dedeaux Properties picked the right location and the right time to invest in spec industrial property, as the Inland Empire continues to hold the distinction of being the most-sought-after warehouse and distribution market in the U.S., according to a second quarter report by Colliers. The market recorded an average vacancy rate of just 3.4 percent and positive net absorption totaling 4.8 million square feet in the second quarter, amid nearly 3.3 million square feet of new construction deliveries. “e-commerce continues to be a key driver, with e-retailers pushing into more infill areas closer to the consumer base so that they can perform same-day and next-day delivery faster and with lower transportation costs, and locations like ours within the IE benefit by having immediate access to key distributions routes that service population centers in Southern California, Nevada and Arizona,” Brett Dedeaux, principal & manager with Dedeaux Properties, told Commercial Property Executive.
Dedeaux Properties is in growth mode. The company currently manages more than 6 million square feet of logistics properties located predominantly in Southern California and has a robust pipeline of development and acquisition commitments. Current projects include the 47,000-square-foot Vernon Avenue Logistics Center, a preleased food facility due to reach completion in 2020. Looking ahead to 2020, Dedeaux said the investment and development company plans to concentrate on “developing and acquiring state-of-the-art logistics facilities in California with a focus on high demand submarkets, including truck terminals, parking yards and cold storage.”