LOS ANGELES—Large box speculative industrial projects are becoming more commonplace, compared to two years ago. Large box industrial, specifically defined as industrial facilities that are larger than 1 million square feet, is seeing huge demand right now, giving developers ease that they will be able to fill or sell projects upon completion.

“Today, this is a more acceptable size range for a speculative project than it was two years ago, and that is simply a reaction to the great user demand that we are seeing in the Inland Empire,” Chuck Belden, EVP at Cushman & Wakefield, tells GlobeSt.com. Belden recently closed a pre-sale deal for a 1.3 million-square-foot building, which broke ground two years ago. The developer thought a presale was the best way to monetize the asset, but today, there are more developers waiting until completion to bring the property to market.

Belden says that there are at least two 1-million-plus-square-foot buildings under construction and several others that are in the pipeline in the Inland Empire. “We are going to see five buildings compete in this size range, potentially, in the next four months,” he says. The Inland Empire market isn't the only market that is seeing large box industrial development. Valencia has also seen an uptick in large industrial facilities, which are breaking ground in response to the high demand and dearth of supply. Current projects in these markets include the International Airport Commerce Center, a 1.3 million square foot facility, and Gateway V, also a 1.3-million-square-foot building.