The lease is an expansion from a building of about 150,000 elsewhere in Ontario, broker Phil Lombardo of Trammell Crow tells GlobeSt.com. Lombardo represented Electrolux, along with Seth Kelly and Casey Griffin of Trammell Crow.
Lombardo tells GlobeSt.com that Electrolux, which will use the building as a distribution center for its Frigidaire refrigerator division, needed to expand because it was "bursting at the seams" in its old space.
Electrolux is one of many companies that have been expanding and relocating lately, boosting industrial activity in the Inland Empire (Riverside and San Bernardino counties) as well as in the nearby San Gabriel Valley in Los Angeles County.
Many of these companies, Lombardo says, delayed leasing decisions in the second half of last year and early this year in light of the slumping economy and concerns after the Sept. 11 terrorism. "A lot of users couldn't delay any longer, so we've seen a lot of activity in the second quarter and so far in the third quarter this year," he tells GlobeSt.com.
"If user activity remains the way it is, we're on the way to a good year," Lombardo says. That's a big if, however, he points out, because the increased activity thus far may only be a release of pent up demand from users who had put off expansions and it could trail off later in the year.
The warehouse Electrolux leased was built in 1987 and features 42 dock-high positions, two drive-in bays, 28-foot clear height and heavy power. Landlord ProLogis, a REIT based in Auroro, Colo., was represented in-house by Allen Jackel. Electrolux had about nine months remaining on its former space in Ontario and has subleased that 150,000 sf to CNC Container.
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