Industrial Highlights Inland Empire | Q3 2014 The overall health of the market is favorable with the most demand seen in the under 400,000-square-foot segment. Although construction volumes are back to peak levels, net absorption is positive and tenant requirements remain strong. Leasing activity West • NFI, specializing in logistics, transportation and distribution, committed to a 120-month renewal for 1.0 million square feet at 16045 Mountain Avenue in Chino. • NFI also inked 120-month renewals for 489,741 and 389,358 square feet at 15730 Mountain Avenue and 15704 Mountain Avenue in Chino, respectively. • Staples signed a 60-month renewal for 450,000 square feet at 1500 S. Dupont Street in Ontario. • Emser Tile committed to a 60-month renewal for 432,397 square feet at 5300 Shea Center Drive in Ontario. • Leapfrog, an educational entertainment company, signed a 61-month renewal for 410,800 square feet at 13479 Valley Boulevard in Fontana. • Taylored Services, a retail distribution and e-commerce solutions provider, inked a 64-month direct lease for 400,000 square feet at 13950-14050 Norton Avenue in Chino. • Central Garden & Pet signed a 38-month renewal for 395,954 square feet at 851 N. Vintage Drive in Ontario. • Pratt Industries, offering recycled packaging, committed to a 63-month direct lease of 223,170 square feet at 1200 S. Etiwanda Avenue in Ontario. East • Amazon.com inked a 120-month direct lease for 704,115 square feet at 2125 San Bernardino Avenue in Redlands. • Federal Mogul, suppliers of original and aftermarket automotive products, signed a 126-month direct lease for 522,772 square feet at 22750 Cactus Avenue in Moreno Valley. • Yakima Products, specializing in car racks, committed to an 87-month direct lease for 209,573 square feet at 6677 Box Springs Boulevard in Riverside. • Organize It All, an online retailer of home organization and storage, signed a 60-month direct lease for 155,679 square feet at 250 Airport Circle in Corona. Vacancy Rents Net absorption Leasing volume Sales prices Sales volumes Construction deliveries Arrows represent change from prior quarter Tenants in the market • Smart & Final is in the market for up to 1.2 million square feet. • Medline is in the market for up to 1.0 million square feet. • QVC is in the market for up to 1.0 million square feet. Sales activity West • TIAA-CREF purchased a portfolio of two properties, 5642 and 5648 Ontario Mills in Ontario, totaling 435,283 square feet from Western Realco for $37.9 million ($87 per square foot). • Guthrie Development Company acquired the 220,190-square-foot Airport Distribution Center, located at 1500-1590 Milliken Avenue in Ontario, from Panattoni / CalSTRS for $20.3 million ($92 per square foot). The complex was 93 percent occupied by 28 different tenants at the time of sale. • Ngy Stone & Cabinet, Inc. bought a 125,322-square-foot property at 14275 Telephone Avenue in Chino from Blackridge / Verde for $10.7 million ($85 per square foot). The property was vacant at the time of sale and the buyer acquired the building for expansion purposes. East • Industrial Property Trust purchased an 830,750-square-foot investment property at 6207 Cajon Boulevard in San Bernardino from Hillwood for $56.5 million ($68 per square foot). The property was sold vacant. Sales activity continued East • The Najjar Family bought a 600,000-square-foot investment property, Beaumont Logistics Center located at 630 Nicholas Road in Beaumont, from CT Realty for $30.0 million ($50 per square foot). The property was fully leased on triple-net terms to a fitness equipment supplier at the time of sale. • Stockbridge Capital group acquired Redlands Corporate Center, comprised of 12 buildings totaling 403,938 square feet located in Redlands, for $27.5 million ($68 per square foot) from The Muller Company. The aggregate occupancy was 85.8 percent at the time of sale and escrow time was approximately 60 days. Construction activity Developers continue to capitalize on the Inland Empire, a dynamic market that leads the country with speculative and build-to-suit construction activity. Peak level construction has returned with many large-scale projects well underway, including Goodman Birtcher (1.6 million square feet), Majestic (1.2 million square feet), IDI / Brookfield (1.0 million square feet), DCT (927,000 square feet), CapRock Partners (900,000 square feet) and Prologis (809,000 square feet). For more information, please contact: Melineh Soukiasian Research Analyst Los Angeles +1 (213) 239 6266 [email protected] ©2014 Jones Lang LaSalle IP, Inc. All rights reserved. No part of this publication may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of Jones Lang LaSalle. The information contained in this document has been compiled from sources believed to be reliable. Jones Lang LaSalle or any of their affiliates accept no liability or responsibility for the accuracy or completeness of the information contained herein and no reliance should be placed on the information contained in this document.
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