Robust Industrial Leasing Continues to Dominate in IE

The Inland Empire industrial vacancy rate hit a record low in the first quarter with robust leasing activity from the last nine months of 2020 carrying over into 2021, according to Newmark research. Construction activity was up 36.2 percent from year-end 2020 and quarterly net absorption was substantially higher than the 20-year average of 4 million square feet, says Newmark. Moreover, the firm indicates with the post-pandemic labor market recovery and swift growth of e-commerce sales, the forecast for the IE big-box logistics corridor is highly bullish.

With that forecast in mind, a 203,408-square-foot lease was recently inked at California Commerce Center in Ontario. The tenant was Banyan Imports. 

The building located at 3551 E. Philadelphia St. features 4,780 square feet of total office space, 29 dock-high doors, one ground-level door with a truck ramp, 30-foot clear height, an ESFR sprinkler system, a large concrete truck court and a secure gated yard.

Newmark’s Ron Washle and Mark Kegans represented the landlord Principal Real Estate Investors. The tenant was represented by NAI Capital.  

“We were pleased to have pre-leased this building while the former tenant was still occupying the space, avoiding any vacancy for the landlord,” said Washle. “We were also successful in achieving a substantially higher rental rate.”