|
|
5/13/16
|
Noble House Home Furnishings has agreed to a $27 mil lease for Prologis Mission Distribution Center, a 741.5k sf, Class A industrial distribution center situated on 31 acres in the Inland Empire city of Ontario. The lease term was not disclosed.
Noble House Home Furnishings is a family-owned manufacturer and distributor of home furniture, specializing in a wide variety of decor, seating, and outdoor furniture. The property will serve as the new West Coast Regional Distribution Center for Noble House.
Built in 2001 and acquired by Prologis in 2007, Prologis Mission Distribution Center is located at is located at 3655 S. Philadelphia St and was completely vacant prior to this lease. It features 30-foot ceilings, 48 dock-high loading doors, and an ESFR sprinkler system. The property offers immediate access to the 10, 60, and 15 freeways, as well as the Ontario International Airport for transportation and distribution.
Peter Castleton with Voit Real Estate Services represented Noble House in the transaction. The company launched a regional consolidation of its West coast offices in 2015. The manufacturer, which previously occupied small distribution centers in Chatsworth, Canoga Park, and the South Bay, was seeking a central Class A facility that would accommodate increased efficiency while lowering occupancy costs.
“While coastal markets remain attractive, low vacancy rates and high rents are driving industrial tenants inland,” says Castleton. “The challenge, however, is overcoming the steep competition in the current Inland Empire industrial market.”
Castleton notes that industrial activity in the Western region of the market has been astounding, and points to a flurry of recent transactions to illustrate this trend.
“7.48 msf of industrial product have been absorbed since January of this year, and vacancy is at 2.4 percent, which is the lowest rate we’ve seen in years,” he explains. “The tightening of the Inland Empire West market has significantly increased competition for quality product, and landlords continue to receive multiple competitive offers from prospective tenants.”
|
|
 Return to the Archive page
|
|
|
|
|
Printer-friendly Version
Email an Associate
