Top 10 Industrial Completions in the Inland Empire
- May 08, 2019
In 2018, the Inland Empire’s industrial market saw another peak year for development, with more than 22 million square feet delivered, according to Yardi Matrix. The last time the metro had so many significant industrial completions was in 2006. With more than 5 million square feet already delivered and an additional 17 million square feet underway, 2019 is lined up for another strong year.
Industrial properties continue to perform well nationwide, as rents grow and vacancy rates fall across the country. As developers continue to build, activity has been highly concentrated in a select few key areas—the submarkets of Moreno Valley, Ontario-Chino and Southwest Riverside County accounted for approximately 72 percent of new product added in the past 12 months. In sharp contrast to the geographic concentration of newly opened facilities, market share between property investors continues to diffuse—each of the 10 largest deliveries in the previous year had a different owner or developer.
The table below uses data from Yardi Matrix to highlight the top 10 industrial completions in the Inland Empire during the previous 12 months ending in March.
5. Prologis Eucalyptus Industrial Park – Building 2
Prologis completed work at all four buildings of its Eucalyptus Industrial Park near the start of the year. The second and largest structure, built to LEED Gold standards, contains 779,233 square feet. Fullmer, who handled general contracting duties at the project, started construction work in February 2018, though plans for the development date back to 2015.
Located at 28020 Eucalyptus Ave. in Moreno Valley, the distribution center is positioned alongside California Route 60, roughly 65 miles east of Los Angeles. The cross-dock facility’s features include 36-foot clear heights, a secured, 185-foot truck court and 142 dock-high loading doors. The building is fully leased to Solaris Paper.
4. Optimus Logistics Center – Building 1
The two-building Optimus Logistics Center, developed by Rockefeller Group, delivered in October, adding more than 1.4 million square feet to the market’s inventory. The first and largest structure, containing approximately 1 million square feet, sold shortly after completion to Ferguson Enterprises. Construction work on the HPA-designed project began in September 2017, with Fullmer acting as general contractor for this project as well. U.S. Bank financed the development of both facilities to the tune of $65.4 million.
Located at 4100 N. Webster Ave. in Perris, the cross-dock building features 36-foot clear heights and is situated near the intersection of Interstate 215 and Ramona Expressway. The area surrounding the logistics center is a hotbed of industrial activity, with developers completing nearly 4.5 million square feet within 1 mile of the property in the past five years and another 2.6 million square feet in the pipeline.
3. Modular Logistics Center
Alere Property Group’s 1.1 million-square-foot Modular Logistics Center broke ground in April 2017 and delivered a year later. Wells Fargo provided the developer with $54 million in construction financing. The building is located at 17350 N. Perris Blvd., positioned within a Foreign Trade Zone in Moreno Valley.
The cross-dock warehouse features high, 40-foot clear heights, more than 5,000 square feet of office space, 256 dock-high loading doors and four drive-in doors. The building also includes skylights, an 8-inch floor slab, 336 parking spaces and 300 trailer stalls. Colliers International is marketing the asset for lease.
2. First Nandina Logistics Center
Less than a mile to the west of Alere’s property, the nearly 1.4 million-square-foot First Nandina Logistics Center delivered in September, making it the Moreno Valley’s largest completion in the past 12 months. Developed by First Industrial Realty Trust, the project kicked off a year earlier.
The cross-dock asset, located at 24385 Nandina Ave. in Moreno Valley, is a stone’s throw from Interstate 215. The building has a 40-foot minimum clear height, 224 loading docks and four 12- by 14-foot drive-in doors. Other features includes fenced truck courts measuring up to 352 feet, 653 trailer parking stalls and nearly 10,000 square feet of office space. The property is fully leased to Lowe’s Home Center.
1. Majestic Chino Gateway – Building 1
In October, Majestic Realty finished work on the final, 1.4 million-square-foot structure within its 2.8 million-square-foot Majestic Chino Gateway industrial park. JPMorgan Chase provided $92.6 million in construction financing to the developer. The owner’s two other warehouses within the center delivered in 2014 and 2017.
Located at 6720 Kimball Ave. in Chino, the property is situated in a heavily industrial area, with more than 14 million square feet of distribution space within 1 mile of the building—the vast majority of it developed in the past 10 years. The cross-dock structure is fully leased to Walmart and features 40-foot clear heights, 195-foot fenced truck courts and 256 loading doors equipped with bumpers and levelers.