USAA, Overton Moore to Develop 523 KSF Inland Empire Industrial Facility
- Feb 14, 2012
February 14, 2012
By Nicholas Ziegler, News Editor
Along with multi-family, the industrial sector will likely see some significant gains during 2012. According to a January report by services firm Cushman & Wakefield Inc., activity has sprung back to pre-recession levels, with 306 million square feet of leases signed in 2011 – a level not seen since 2007.
“Two things are happening,” Jim Dieter, executive vice president and head of industrial brokerage for Cushman told Commercial Property Executive about the year-end report. “One, there is renewed confidence in the market. And two, we’re getting a verification that there is an acute shortage of big-box distribution space.”
To capitalize on the need for that space, USAA Real Estate Co. has acquired 26 acres of land in Moreno Valley, Calif., that will be the future site of a 522,772-square-foot distribution center. Southern California-based Overton Moore Properties will act as developer for the project. Millie and Severson Inc. will serve as contractor, and the architect on the project is HPA Inc.
Noting that the building will “fill a needed niche in within the marketplace,” Overton CEO Timur Tecimur mentioned that his firm is looking forward to find tenants “looking for a highly efficient cross-dock building.”
A third-quarter 2011 report by Voit Real Estate Services noted that the Inland Empire industrial market has seen a rise in asking lease prices, reaching $0.35 per square foot. “The widespread increase in rates year-to-date, coupled with rising industrial lease rates in three major markets just eight weeks into the third quarter, indicate that the industry is coming off the bottom,” Jerry Holdner, director of market research for Voit, said.
The building, to be called Centerpointe Logistics Center, will have a cross-dock configuration with 113 dock positions and 126 trailer storage spaces.