SAN BERNARDINO, CA-Alere Property Group LLC is a fully integrated real estate company focused on high-quality industrial property throughout the western US. The company has acquired, entitled and developed more than 14.7 million square feet of industrial product valued in excess of $1.4 billion since its inception in 2003 making it one of the fastest growing and most dynamic investors in the region. A significant portion of the company's portfolio is located in San Bernardino County, including the recently completed 604,000-square-foot HauteLook distribution facility in San Bernardino. GlobeSt.com recently chatted with Matt Englhard, VP of development and construction at Alere Property Group, on the County, what types of tenants are looking for space there, and why large-format industrial buildings, anything over 500,000 square feet, are the hottest segment of the market right now
GlobeSt.com: Tell me about your industrial real estate activity within the County of San Bernardino
Englhard: Alere's focus within the County of San Bernardino is industrial investment and development specifically large, class A warehouses. Our firm defines class A warehouses as trending to 36' clear height properties that include flat slab, ESFR systems and ample room for trailer storage. The firm owns about 13 million square feet in the Inland Empire with a majority located in San Bernardino County. We currently have six active development projects within the County totaling about 2.9 million square feet, and have developed and acquired more than 6.6 million square feet there over the past 10 years. A majority of the buildings are built on spec, but they tend to lease quickly based on tenant demand.
GlobeSt.com: What types of tenants are looking for industrial space within the County?
Englhard: In general, large-format industrial buildings, anything over 500,000 square feet, are the hottest segment of the market right now. The majority of this demand is driven by corporate consolidation by a number of Fortune 500 companies, that are doing well and are now focused on consolidating their smaller facilities into one, more efficient large format facility.
Fulfillment center demand is also driving the market. These are high capital investment logistic centers that are geared to next day overnight delivery. A great deal of investment is made inside the building to ensure their distribution process happens in a very timely manner. To accommodate the systems in these buildings, the clear heights are getting higher. As a company that's why we're building more 36' clear height ceilings.
An example in the fulfillment trend is Amazon.com's expansion in the County. The company located into a 950,000-square-foot warehouse in the City of San Bernardino in 2012 and is now planning to add another 515,000 square feet to its facility.
Another good example is the HauteLook facility. Alere completed a 604,000-square-foot facility with Nordstrom-owned HauteLook, an online shopping company. The company will occupy the entire building this October and is more than doubling its space from its current 300,000-square-foot Fontana location. HauteLook will use the space for its inventory storage, fulfillment and returns processing. Both Amazon and HauteLook are e-commerce companies indicative of the categories that are growing in the County.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
