SoCal Real Estate has learned exclusively that Nordstrom Inc. has signed a lease with Columbia Business Center LLC to occupy a 1 million-square-foot logistics facility within the three-building, 1.4 million-square-foot Columbia Business Park at 490 Columbia Avenue in Riverside, California. A representative of Colliers International, which represented the landlord in the transaction, says the 10-year lease is estimated to total $55 million.
According to a statement from the source, this is the second largest logistics center leased to Nordstrom in Southern California during 2018. Earlier this year, Nordstrom also leased a 512,000-square-foot urban-infill logistics facility located in Torrance, California, owned by a Morgan Stanley Prime Fund.
The statement also says Colliers senior EVP Kevin McKenna, who is based in the brokerage firm’s Inland Empire and Orange County offices, represented Columbia Business Center LLC in the transaction and that The Trammell Crow Company served as the development partner.
According to the release, the warehouse will reportedly provide fulfillment of e-commerce orders and warehouse services for Nordstrom’s operations. This sourcelink reports that Nordstrom is making a big push toward getting its e-commerce ducks in a row in the Southern California market.
The statement says the property includes abundant employee parking, cross-dock loading, “huge” secured truck yards, high clearance, and 8,000 amps of electrical service to serve extensive material-handling equipment.
McKenna is quoted in the release as saying, “With the dramatically changing online buying habits of consumers, retailers must move quickly to open fulfillment centers that process orders immediately and ship directly to customers the same day.”
McKenna adds that tenants are making huge investments inside the buildings to store and retrieve products mechanically and that often the investments are equal to or more than the total lease consideration of the building.
Large logistics facilities are really moving in the Inland Empire. McKenna tells us that he also just facilitated a 10-year lease between Lowe’s Home Improvement and First Industrial Realty Trust for Lowe’s to occupy 1.4 million square feet of modern warehouse space at 24385 Nandina Avenue in Moreno Valley, California.