DCG Fulfillment, a third-party logistics (3PL) provider, has signed a 771,839-square-foot lease at 1300 California Street in Redlands, California. The property is a distribution cross-dock warehouse with 36-foot minimum warehouse clearance.
Newmark Knight Frank’s (NKF’s) senior managing directors Mark Kegans and Ron Washle represented the tenant in the lease transaction with the owner, Black Creek Group. This lease represents an expansion for DCG.
“DCG chose this location because it has good freeway access, ample labor supply, and provides a state-of-the-art high-cube warehouse for its customers,” says Washle.
To underscore demand for Inland Empire industrial space, in late 2017, Kegans and Washle completed a 1.4-million square-foot warehouse lease in Chino, California, for an undisclosed tenant with landlord Majestic Realty Company. The deal represented the largest single-building lease transaction to date since 2014 in Southern California. The tenant will occupy the entire building that is now under construction.
According to NKF’s Inland Empire Q1 2018 industrial-market report, modern space for consolidation or expansion at competitive rental rates remain a selling point for this market. E-commerce will represent 17 percent of total U.S. retail sales by 2022, and this continues to impact tenant demand. Online retailers, 3PLs and transport-related companies remain especially active.