Dorel Renews 528 KSF Industrial Lease in California's Inland Empire
- Apr 03, 2012
By Nicholas Ziegler, News Editor
In a deal brokered by services firm Cushman & Wakefield Inc., Dorel Juvenile Group has re-signed for 528,000 square feet of industrial warehouse and distribution space in Fontana, Calif. Part of Montreal-based Dorel Industries, Inc., a global, multi-brand consumer products company, Dorel Juvenile Group has been located at the property since 2006.
The facility, located at 9950 Calabash Ave., will handle the company’s inbound products that come through the Ports of Los Angeles and Long Beach, routing them for distribution across the United States. Dorel Juvenile Group manufactures and distributes car seats, strollers, high chairs and other products for children.
Chuck Belden of Cushman, who represented Dorel in the transaction, saw the potential for the warehouse’s location. “This facility and the Inland Empire region, in general, provide an ideal base for this type of large-scale distribution operation,” he said. “Beyond proximity to the largest port system on the West Coast and an excellent highway infrastructure, companies doing business here can find high-quality industrial product and a strong labor pool.”
A February 2012 report by Voit Real Estate Services noted that the fourth quarter of 2011 marked the tenth consecutive quarter for positive net absorption in the Inland Empire industrial market. “The demand for industrial space has picked up, and we are seeing renewed interest in sales transactions,” Walt Chenoweth, executive vice president of Voit’s Inland Empire office, said. “We also anticipate that tenants will continue to sign longer-term leases as lease rates begin to rise. These are all positive indicators that the market is steadily recovering, and we expect to see continued stabilization as job growth occurs.”
According to Voit, industrial vacancy rates finished the year at 7.4 percent, a 22 percent decrease from 2010. The lowest vacancy rate in the fourth quarter was found in the Western region of the Inland Empire, at 7.03 percent.
In the context of the area’s recovery, Belden noted that the renewal was a good move for Dorel. “We are beginning to see upward pressure on rents here,” he said. “Still, we were able to negotiate attractive terms — at a rate that may soon be below market — for our client.”
*This story was updated at 2:38 p.m. on April 3, 2012, to reflect the correct spelling of Walt Chenoweth, executive vice president of Voit’s Inland Empire office.