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645,000-SF Lease May Signal Tenant Resurgence

MIRA LOMA, CA-Combined with February transaction for 517,346 square feet in Redlands, brokers say the deal shows companies are again willing to make major commitments.

By John McCloud | Updated on April 27, 2009

MIRA LOMA, CA-Brokers for both sides of last week’s lease by IDS USA at AMB Galleano Distribution Center say the transaction may signal an upsurge in market confidence. The 645,311-square-foot lease is the largest signed in the Inland Empire this year and the second over 500,000 square feet.

“Lot of tenants have been exploring but not taking actions,” says Frank Geraci, an executive vice president in the Ontario, CA office of CB Richard Ellis. “This is a statement that somebody’s stepping up and making a commitment for this size square footage.”

Geraci, who with CBRE colleagues Steve Sperber, John Isaacs and Walt Chenoweth represented the tenant in the transaction, says other tenants are definitely looking but generally have bee reluctant to take action. The year’s other large deal was Watson Land Co.’s 517,346-square-foot lease to Kenco Logistics Services in Redlands, CA in February. Prior to that, Geraci tells GlobeSt.com, the only transactions were smaller warehouse deals. He says the completion of more than one million square feet in just two leases sends a signal of confidence that could provide the spark other companies need to break through their inertia.

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