Amazon’s biggest U.S. warehouse deal ever comes to Inland Empire

E-commerce giant signs 4.1M sf lease at project in Ontario

Los Angeles /
Apr.April 14, 2022 09:26 AM
Amazon CEO Andy Jassy, Jeff Bezos and 8600 Merrill Avenue (JD Lasica, CC BY 2.0 via Wikimedia Commons, Getty Images, Google Maps)

Amazon is opening its biggest warehouse ever in the Inland Empire.

The company signed a lease in the first quarter to take 4.1 million square feet at an unnamed industrial development in Ontario, according to a CBRE report obtained by TRD. CBRE declined to comment on the deal further and Amazon did not respond to a request for comment.

That’s about 40 Walmart stores in one location.

Prologis is the only developer working on a 4.1 million-square-foot development in Ontario — a five-story warehouse structure set to open next year on Merrill Avenue between South Grove and Carpenter Avenue. Prologis declined to comment on a lease at the property, citing “client confidentiality.” Prologis bought 39 parcels for the site in April of last year, public records show. Roughly a quarter of those sites were bought for $59.8 million.

The property is being built as part of a larger plan, dubbed the Merrill Commerce Center, to build up to 7 million square feet of industrial space and a further 1.2 million square feet of business park real estate on more than 360 acres of former dairy farms and residential lots, according to city planning documents. The city of Ontario did not immediately respond to a request for comment.

Amazon’s new facility will be its largest in the country. Over the last few years, the company has also pivoted to owning its real estate and building its own facilities.

In Suffolk, Virginia, Amazon is building a 3.8 million-square-foot warehouse across about 87 acres it purchased for $4.58 million.

In 2019, the company started plans to build a 3.73 million-square-foot development across 70 acres in Colorado Springs. The company paid $6.33 million for the site in 2020.

If Amazon is taking up the Prologis site, the company already has a sorting center across the street, according to Google Maps.

The Prologis development is also minutes from Ontario International Airport, a neighboring UPS regional air hub, and other existing logistics facilities, including distribution hubs for Nike, Restoration Hardware and VF Corporation, which owns Vans, Timberland, Supreme, Dickies, Eastpak and The North Face, among others.

Not all Ontario residents are on board with the influx of warehouses and logistics centers. In March, about 1,000 residents signed a petition against the city moving forward with a plan to rezone almost 220 acres of former agricultural land to allow for industrial development.

Dairy farms are specifically being targeted by developers and Inland Empire cities for redevelopment, as labor has shifted away from agriculture in the region. The relatively new Inland Empire city of Eastvale has proposed to construct a new downtown and civic center, with up to 2,500 homes across 153 acres of former dairy farms.





    Related Articles

    arrow_forward_ios
    Duke Realty's James Connor and 14724 Proctor Avenue in City of Industry (Google Maps, Duke Realty)
    Duke Realty gets another 230K sf in City of Industry
    Duke Realty gets another 230K sf in City of Industry
    Bridge Industrial founder and CEO Steve Poulos and 4885 East 52nd Place in Vernon (Google Maps, Bridge Industrial)
    Bridge Industrial picks up 8 acres in Vernon
    Bridge Industrial picks up 8 acres in Vernon
    IGP Business Group's Matt Ilbak and Moreno Valley Mall (IPG Business Group, Moreno Valley Mall)
    Indoor mall in Moreno Valley up for mixed-use makeover
    Indoor mall in Moreno Valley up for mixed-use makeover
    BentallGreenOak Sonny Kalsi and Stream Realty's Lee Belland and Mike McVean with 10380 Alder Avenue (LinkedIn, Stream Realty Partners, LoopNet)
    Newly built Inland Empire warehouse fetches $83M
    Newly built Inland Empire warehouse fetches $83M
    Colton Mayor Frank J. Navarro (City of Colton, California)
    Colton to extend moratorium on distribution warehouses
    Colton to extend moratorium on distribution warehouses
    Red Mountain Retail Group's Michael H. Mugel with 11901-12089 Central Ave (Red Mountain, Newmark, iStock)
    Red Mountain goes shopping for retail in Inland Empire
    Red Mountain goes shopping for retail in Inland Empire
    Village Partners' J. Donald Henry and Michael Morris; rendering of Redlands Mall project (City of Redlands, Village Partners)
    Redlands zombie mall gets OK for retail-housing village
    Redlands zombie mall gets OK for retail-housing village
    Rexford Industrial Realty co-CEOs Howard Schwimmer and Michael Frankel and 13535 Larwin Circle and 7815 Van Nuys Boulevard in Panorama City (Google Maps, Rexford)
    Rexford spends $153M on six industrial properties
    Rexford spends $153M on six industrial properties
    arrow_forward_ios

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

    Loading...