Tenant Takes Entire Industrial Building
- Apr 06, 2011
April 5, 2011
By Barbra Murray, Contributing Writer
The tenant roster at Ontario Distribution Center II in Ontario, Calif., went from empty to full as Pacific Coast Warehouse Co. signed a lease to occupy the 411,500-square-foot building in its entirety. The seven-year agreement paves the way for the third-party distribution organization to relocate from its existing home in Chino, while remaining in the popular Inland Empire market.
Commercial real estate services firm Jones Lang LaSalle represented Pacific Coast in the transaction, while Colliers International stood in for the property owner, Ontario Industrial Partners.
Located at 3601 Jurupa St., Ontario Distribution Center II sits 10 miles from Pacific Coast’s current digs at 5125 Schaefer Ave. The deal allows the company to upgrade to Class A accommodations just as the rates are starting to inch up in the Inland Empire.
“The Inland Empire has a lot has a lot of positive attributes,” Tim O’Rourke, an executive vice president with JLL, told CPE. “It provides easy access to the Ports of Los Angeles and Long Beach, which are the largest ports in the country, to the 20-million population of Southern California and to a strong transportation infrastructure that includes not only highways, but rail as well, so the Inland Empire is always going to prosper in the long run.”
Just like every other industrial market in the country, the Inland Empire took its punches during the economic downturn; however, it’s making an impressive comeback. “The market is getting tight in the 400,000 square-foot range at both Class A and Class B properties,” Thomas E. Taylor, a senior vice president with Colliers, told CPE. “The market fundamentals are improving tremendously out here. Last year was the second biggest year ever for industrial leasing in the Inland Empire. In 2010 there was 13 million square feet of positive net absorption.”
The market is not only outperforming all of California, it is outshining markets beyond the state’s borders. “The Inland Empire, which has about 380 million square feet of industrial space, represents 30 percent of absorption in the U.S.,” O’Rourke said. “There’s a lot of absorption because we turned the corner. The larger corporate users took the opportunity to take advantage of the market and a lot of companies that had put plans on hold in 2008 came back to the market so it was a twofold issue.”