3PL Company Signs 400K-SF Lease In Inland Empire

The Inland Empire is continuing to attract top-tier industrial users. Kenco Logistics, one of the most prominent third-party logistics companies in the country, has signed a 400,000-square-foot lease at Perris Gateway Commerce Center. The property will serve as a multi-distribution center.

The Inland Empire is a major industrial market largely due to its proximity to Los Angeles and other major Southern California, and this property is no different. Located at 1301 Harley Knox Boulevard, it is close to Los Angeles with direct access to the I-215 and SR-60 freeways. The property also features 32-foot clear heights, 49-foot dock-high loading with two grade-level loading doors and nearly 5,000 square feet of office space. Newmark executive managing directors Ron Washle and Mark Kegans represented Kenco in the transaction, along with Jimmy Glascock of JDK Real Estate.

The Inland Empire maintained its appeal throughout the pandemic, continuing to capture strong tenant demand despite the market dislocation. Last year, the Inland Empire had an impressive 26 million square feet of industrial absorption, according to a report from JLL. Ecommerce demand drove the leasing activity, which surged at the end of the year. At the same time as leasing activity picked up, construction activity slowed, and many are expecting rental rates to increase this year in the market as a result of a potential supply-demand imbalance.

The Inland Empire also had the highest leasing transaction volume in the country last year for large buildings over 1 million square feet, according to research from CBRE. The pandemic accelerated large-box industrial needs, creating a lack of supply in the Inland Empire—a phenomenon the market had not seen before. As a result, occupiers started to focus more intently on securing space, further driving transaction activity. Similarly, CBRE is also predicting rent growth this year as high as 15-25% annual growth.