Duke Realty Scores $79M Industrial Lease in Inland Empire
An e-commerce distribution company signed to the 1.1 million-square-foot property in Southern California’s San Bernardino County
It appears the Inland Empire will maintain its reign as the hottest market for industrial real estate in the country, even in the cold COVID-restricted winter.
Duke Realty has secured a major $79.23 million lease for a 1.1 million-square-foot property in Southern California’s San Bernardino County. The tenant, Pioneer Technologies, is a Fontana-based e-commerce distribution company that sells furniture and consumer goods.
The 124-month lease expansion at 9180 Alabama Avenue in the city of Redlands further proves the heightened demand for e-commerce and industrial real estate. Colliers International represented Duke Realty and announced the lease.
“Throughout the pandemic, we continued to see the industrial space and its investors remain bullish in the market,” Colliers’ Mark Zorn said in a statement. “These deals not only represent confidence in the market and the region, but a more robust hub in Southern California for industrial space and fulfillment centers.”
CBRE’s 2021 outlook explains that industrial utilization in the region has continued to rise, even in the face of pandemic headwinds, and that “the explosive growth of e-commerce” will continue to drive significant net absorption this year.
“Given the strong fundamentals, Southern California markets are projected to lead the nation in rent growth over the next five years,” according to the report. “The Inland Empire continues to be the dominant market in the nation for Class A industrial product. Total inventory in the market is expected to increase by 17 percent by 2025 as developers respond to the intense demand.”
Earlier this week, Rockefeller Group sold about 500,000 square feet of new space in the Inland Empire for $80.75 million. Last month, L.A.-based Rexford Industrial Realty closed a $129.4 million deal for four buildings in the Inland Empire.