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Home Depot signs 1.1M sf lease for distribution hub
Property is part of Clarion Partners seven-building industrial park
Home Depot is getting a new warehouse in the Inland Empire.
The Atlanta-based home improvement retailer signed a lease to take up a 1.1 million-square-foot building in Ontario, according to a Savills report. Terms of the lease were not disclosed and Clarion Partners did not respond to a request for comment.
New York-based Clarion Partners developed the building as part of its larger plan for an industrial center on approximately 86 acres of land between Euclid Avenue, Eucalyptus Avenue and Merrill Avenue.
In 2020, Clarion Partners scored approval from the city of Ontario to build around 1.9 million square feet of industrial and business park space, according to city documents.
Home Depot signed a lease for the largest of seven buildings at the park. The building has 40-foot clear heights, 193 dook doors, as well as parking for 244 trailers and 382 cars. CBRE was offering the property up for lease under a triple-net deal.
Home Depot saw a sales surge during the pandemic, as people at home looked to do-it-yourself projects and contractors saw an uptick in renovations.
The big-box retailer’s sales in the fourth quarter of 2021 reached $35.7 billion — a 10.7 percent increase year-on-year. For the whole year, sales increased 14.4 percent compared with 2020, reaching $151.2 billion.
This surge in sales has prompted a need for more distribution centers.
The company already has a warehouse in Ontario, at 5655 Ontario Mills Parkway, a roughly 668,000-square-foot property owned by Prologis.
The new warehouse is located three miles south of California State Route 60, which serves neighborhoods in eastern L.A. and the south San Gabriel Valley. It also links to the I-10 and I-15 and CA-57 freeways.
Home Depot had a total of around 88.5 million square feet of warehouse space at the end of 2021 — a 16 percent increase from the end of 2020, when it reported 75.9 million square feet, according to financial filings. The company leases 95 percent of its distribution centers.