Inland Empire leads nation in major warehouse leases

E-Commerce companies expanded demand for large industrial deals

Los Angeles /
Feb.February 25, 2019 02:00 PM
David Egan, CBRE’s head of industrial and logistics research (Credit: Wikipedia)

The Inland Empire area claimed more major warehouse deals than any other market in the country last year.

The submarket west of Los Angeles led all markets with 20 of the top 100 deals in the nation, according to CBRE. It was able to exploit a tight market in the City of L.A. and increasing demand from e-commerce and logistics companies, which signed more major warehouse leasing deals in 2018 than the year before.

The Inland Empire deals totaled almost 19 million square feet. It was followed by a corridor in Pennsylvania, Dallas-Fort Worth, Atlanta and Chicago, CBRE said.

Companies have been more attracted to the Inland Empire lately because it offers cheaper space and less competition compared to Los Angeles’ industrial market. Ivanhoe Cambridge and CapRock Partners, for example, announced plans to develop a $450-million industrial campus in the Inland Empire area last August.

Of the largest 100 industrial leases last year, 61 were signed by e-commerce companies and logistics firms, for a total of 61.5 million square feet. In 2017, those two sectors claimed 52 of the largest leases for a cumulative 43.2 million square feet.

The two types of firms are related in that many logistics companies, specifically third-party logistics providers, handle e-commerce distribution for their clients. But regardless of industry, the largest industrial leases got even bigger last year.

The top 100 deals totaled 19 percent more space than the biggest deals in 2017. Half of the top 100 deals in 2018 were for warehouses with 970,000 square feet or more, reflecting demand for large buildings.

David Egan, CBRE’s head of industrial and logistics research, said the firm expects this type of leasing momentum to continue in 2019. In October, online marketplace Ten-X Commercial predicted that rents in Inland Empire will increase by 6.5 percent through 2022, and that vacancies would almost triple from 3.4 percent to 9.5 percent in the same time frame.


Related Articles

arrow_forward_ios
The Godfrey Hotel in Hollywood and the Hyatt Place in San Francisco (Godfrey Hotel Hollywood, TripAdvisor)
California hotel buyers’ price per room goes up, deals down
California hotel buyers’ price per room goes up, deals down
From left: Harbor Associates' Joon Choi, Justin Loiacono, and Paul Miszkowicz with 30601 Agoura Road
Harbor Associates buys Agoura Hills office for lab redevelopment
Harbor Associates buys Agoura Hills office for lab redevelopment
Los Angeles overflowing with shipping containers
Desert “port” planned to relieve San Pedro Bay congestion
Desert “port” planned to relieve San Pedro Bay congestion
Seritage's Andrea Olshan and renderings on 3001 Iowa Avenue (LinkedIn, Getty, "Architecture. Design. Relationships")
Seritage sells former Kmart site in Riverside
Seritage sells former Kmart site in Riverside
Martin Katz and Fred Hayman building at 190 N. Canon Drive, Beverly Hills (GIA, Loopnet, Getty)
Martin Katz goes top-floor in Beverly Hills
Martin Katz goes top-floor in Beverly Hills
East End Capital's Shep Wainwright with rendering ADLA Campus (East End Capital, Grimshaw)
East End Capital eyes $1B film studio in Arts District
East End Capital eyes $1B film studio in Arts District
Blackstone's Stephen Schwarzman with 6700 8th Street, 22642 Lambert Street and 23512 Commerce Center (Getty, PS Business Parks, LoopNet)
OC portfolio with 1.1M sf part of Blackstone acquisition
OC portfolio with 1.1M sf part of Blackstone acquisition
Brookfield’s Brian Kingston with 425 East Colorado Street (Brookfield's Real Estate Group, LoopNet)
Brookfield sells Glendale office building to owner-occupier
Brookfield sells Glendale office building to owner-occupier
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...