[ad_1]
E-commerce reigns over Southern California’s Inland Empire.
GigaCloud Technology, a business-to-business platform for large supply chain and e-commerce companies, signed two sizable leases in Fontana, Calif., combining for more than 833,000 square feet, according to Savills’ most recent market report. Records show the assets are owned by two of the nation’s top industrial landlords: Prologis (PLD) and Blackstone (BX)’s Link Logistics.
Terms of the leases were not disclosed. GigaCloud did not immediately return requests for comment.
The lease at Link Logistics’ 423,388-square-foot building at 13521 Santa Ana Avenue commenced on Dec. 23, a representative for the landlord told Commercial Observer. GigaCloud also signed a 410,000-square-foot lease a few buildings over at Prologis’ 10721 Jasmine Street. The two structures are in the middle of a massive field of warehouses in Fontana Gateway between Ontario to the west and Jurupa Valley to the East.
Together the leases would make up the second-largest lease in the Inland Empire in the fourth quarter, but individually they are the third- and fourth-largest leases signed in the fourth quarter, according to Savills’ report. The largest was Maersk’s 1.2 million-square-foot deal in Hesperia, followed by Yita’s sublease for 557,200 feet in Redlands.
The industrial market in the Inland Empire “stabilized” as conditions shifted in 2023, per Savills. Average asking rent was 8 percent lower to end the year compared to the final quarter of 2022. Additionally, rental rates are expected to continue to soften in the near term after 38 million square feet of warehouse space was added to the market last year.
GigaCloud’s corporate headquarters is in El Monte, Calif., and it also has offices in Hong Kong and England, according to its website. The firm reported $178.2 million in total revenues in the third quarter of 2023.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
[ad_2]
Source link
