SARES-REGIS’ Big Plans in Little Ontario
- Jul 15, 2015
SARES-REGIS Group has acquired 150 acres of prime industrial land on Interstate 10 in Ontario, Calif., from the Meredith family, with plans to develop seven LEED certified industrial distribution buildings, totaling approximately 3 million square feet.
Additionally, the company has pre-leased the largest of the seven buildings, a planned 1,050,000-square-foot building, to QVC, which will use the space as its first West Coast distribution hub.
“This is the largest and last tract of developable land in the western end of the Inland Empire and located on the I-10 Freeway,” Larry Lukanish, SRG’s senior vice president of commercial development, said in a company statement. “QVC looked at several properties on the market, and we’re pleased that our location was able to satisfy their logistic requirements.”
The land is part of the undeveloped 243-acre Meredith International Centre, which extends nearly a mile along the north side of I-10, opposite LA/Ontario International Airport between Archibald and Vineyard avenues.
According to CBRE’s Inland Empire Industrial MarketView for the second quarter of 2015, the area generated over 10.9 million square feet of gross activity in the second quarter of 2015, bringing year-to-date total to 20.8 million square feet.
“Such strong activity has not been seen since the year 2000, when annual gross activity totaled over 36.1 million square feet,” the report stated. “At its current pace, the Inland Empire is on pace to match or exceed those levels reached in the year 2000.”
Furthermore, CBRE Econometric Advisors forecasts that development activity will continue to increase throughout 2015 and well into 2016, keeping the industrial market robust for the foreseeable future.
The building for QVC is expected to be completed in July of 2016 and will include 30,000 square feet of office and employee cafeteria space. QVC expects to hire approximately 1,000 team members in total by 2020 as the distribution center expands fulfillment to all product categories.
“At QVC, distribution plays a significant role in enriching the customer service experience. For each and every product we ship, we look at it as an opportunity to build trust, loyalty and engagement with our customers,” James Reid, QVC’s vice president of distribution operations, said in a company statement. “This new distribution center will enable us to efficiently and swiftly serve our customers throughout the Western United States.”
The six remaining industrial buildings planned are still available for lease. The buildings range in size from 130,000 square feet to 575,000 square feet with 32-foot and 36-foot clear heights.
To date, SRG has developed more than 21 million square feet of industrial space in the Inland Empire since 1994.
SRG was represented in the land acquisition and the QVC lease by Joe McKay of Lee & Associates. QVC was represented by CBRE brokers Erik Wanland in Ontario and Mike Barker in Wayne, Penn.