REDLANDS, CA-Continental Tire North America has renewed its industrial lease at 27223 Pioneer Ave. here with Prologis, covering 24 months and 497,714 square feet. The global manufacturer and distributor of performance tires has fully occupied this industrial property, which is close to the I-10, I-210 and I-215 freeways, since 2009 and will continue to use it for its North American operations.
“This renewal is an example of how important it is to be forward-thinking in our industry,” said Frank Geraci, an EVP in Voit’s Inland Empire office, in a prepared statement. Voit represented the tenant in the original lease transaction as well as the renewal, while Prologis represented itself. “We anticipated that the Inland Empire industrial market would improve. With this in mind, we proactively negotiated a renewal option for our client, giving them an opportunity to extend their lease under pre-negotiated terms.”
According to Geraci, the market has improved as expected, with the inventory of large industrial buildings in the Inland Empire continuing to decline rapidly as rental rates progressively increase. “As we examined the current market, we advised our client to take advantage of the renewal option, locking in below-market rates for an additional two years.”
As GlobeSt.com previously reported, when Continental signed its original 42-month lease here in July 2009, the deal was one of the largest Inland Empire industrial leases that year, according to brokers who were then from CB Richard Ellis representing Continental. One of the brokers, Walt Chenoweth, explained that the lease represented a consolidation of two warehouses in Southern California for Continental, one in Ontario, CA, that was also a Prologis-owned building and another in South Gate, CA. “Tire uses have very specific fire requirements, including specific roof clearance and more complex sprinkler calculations,” Chenoweth pointed out at the time.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
