Northwest Group Secures Inland Empire Industrial Lease

Textiles manufacturer Northwest Group isn’t keeping itself in a holding pattern amid larger economic concerns for the industrial market.

The Garden City, New York-based company signed a 61-month, 158,730-square-foot lease at First Harley Knox Logistics Center in Perris, California, Commercial Observer reported. The Inland Empire property at 4742 Redlands Avenue is owned by First Industrial Realty Trust and boasts 9,300 square feet of office space and 25 dock-high doors. The deal is valued at $7.9 million.

The Inland Empire is the Western United States’ most active warehouse and logistics hub, so it was a natural choice for Northwest Group to expand.

“This is exactly the type of facility Northwest Group needs to support its continued growth and innovation in home textiles,” The Klabin Company’s Edwin Rosales said in a statement, per CO. “Perris provides direct access to Southern California’s logistics network while being part of a growing textile corridor.”

He added, “The area has seen steady growth in textile and soft goods firms capitalizing on the region’s connectivity and modern industrial product.”

Rosales and colleague Nick Buss represented Northwest in the lease negotiations, while Colliers’ Kevin McKenna and Greg Merrill represented the landlord.

The Inland Empire continues to draw demand from companies and investors despite a drop off in occupancy this year. The I.E.’s industrial vacancy rate hit a 15-year high of 8.5 percent in the second quarter, according to CoStar, above the nationwide industrial vacancy rate of 7.5 percent. I.E.’s rate ticked up to 8.6 percent in the third quarter, per Cushman & Wakefield.

Earlier this week, CIP Real Estate and Almanac Realty Investors secured an $820 million refinancing package for a 42-property industrial portfolio spanning the country, including properties in the Inland Empire. In July, third-party logistics firm IDC Logistics signed one of the largest leases in the I.E. of the year with an 844,311-square-foot lease at a facility owned by Alere Property Group in San Bernardino.

— Chris Malone Méndez