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Prologis lease doubles Inland Empire footprint for supply chain firm
Maersk-owned company takes 468K sf in Redlands
A supply chain logistics firm has leased a 467,900-square-foot warehouse in the Inland Empire city of Redlands, doubling its previous space in the city.
Industrial REIT Prologis signed Performance Team Freight for an entire warehouse at 1901 California Street, according to a report from Lee & Associates.
Performance Team, which is owned by Maersk, provides supply chain management, transportation, warehousing and distribution services. The company previously leased a warehouse 42 percent smaller than its new one: a 267,000-square-foot facility at 26940 Palmetto Avenue. That property is owned by an entity linked to Thrifty Oil, according to public property records.
The move is yet another example of how logistics firms have needed to expand their distribution and warehouse capacity during the pandemic, as online orders accelerated.
Demand continues strong even in the eastern portion of the Inland Empire — an area long considered too far from the ports to be valuable.
Monthly average asking rents for industrial properties in this area hit $1.25 per square foot in the second quarter, a 46 percent increase year-on-year, according to Lee & Associates. Rents in the western portion of the Inland Empire are still higher, reaching $1.30 per square foot a month in the second quarter — a 19 percent increase compared to last year.
In another deal, Prologis recently renewed DHL’s supply chain unit as a tenant at a 406,000-square-foot warehouse in the city of Ontario, a company spokesperson confirmed. Prologis has owned that property since 1998, buying it from San Francisco-based firm Catellus Development, according to public property records filed with San Bernardino County.
Prologis is still expanding its presence in the Inland Empire, with plans to build a 7 million-square-foot industrial development with an extra 1 million square feet of office space in Ontario. Dubbed the Merrill Commerce Center, part of the development is already set to be occupied by Amazon.