The appeal of large industrial spaces in the Inland Empire shows no sign of waning. A representative of Voit Real Estate Services reports that Aliso Viejo, California–based Shea Properties has signed a $33 million lease renewal with Canada-based Dorel Home Furnishings for a 750,000-square-foot warehouse at Shea Center Ontario business park at 5400 Shea Center Drive in Ontario, California.
A statement from the source also says Frank Geraci, Juan Gutierrez, and Adam Geiger of Voit’s Inland Empire office represented Shea in the transaction, while Chuck Belden and Kyle Kehner of Cushman & Wakefield represented Dorel. Geraci is quoted in the statement as saying, “This transaction reflects the ongoing strength of the Inland Empire industrial market, as well as our client’s deep understanding of local market dynamics.”
Geraci adds in the statement that Dorel has been a tenant at Shea Center Ontario since 2001 and that the tenant “was able to save tremendously by not incurring moving costs, while Shea benefitted by having no vacancy or downtime in the property, minimizing out-of-pocket costs.”
Dorel is a manufacturer and distributor of products in the juvenile, sports, and home-furnishings sector, including global brands such as Schwinn, Ameriwood, and Little Seeds, the statement says, adding that, according to Geraci, Dorel will continue to use the facility as a distribution center for its home-furnishings division, while Shea plans to implement minor capital improvements inside the facility.
The release also says the low industrial vacancy rate of 4.32 percent in the Inland Empire allowed Voit to secure a competitive renewal rate for the property based on current market fundamentals.
Other tenants at Shea Center Ontario include Emser Tile, Trek Bicycle, Restoration Hardware, and Neovia Logistics, according to the release, which adds that the property is currently 100 percent occupied.
Shea has been an active industrial owner and developer in the SoCal market. As SoCal Real Estate reported in August, the firm has begun construction on Shea Business Center, a new, state-of-the-art industrial park located on the former ITT site on East Dyer Road and Alton Avenue in Santa Ana, California, according to a representative of the firm.