DSW distribution centers has expanded its cold store lease UBS real estate investors in the Southern California Inland Empire.
The lease now covers 190,325 square feet, including a 164,975 square foot extension and a 25,350 square foot extension at two adjacent facilities in Rancho Cucamonga, San Bernardino County. Neumark brokered the deal.
the Lincoln Distribution Center at 8858 Rochester Avenue serves the headquarters of DSW and provides storage and distribution of food and pharmaceutical products. The new facility is on the opposite side of the street 8675 Rochester Avenue.
“With the very high demand for cold and air-conditioned supply chain services, we invested in converting our environment to temperature-controlled equipment and then added the new facility across the street for drying room needs,” said Brad Thayer, DSW President and CEO.
Cold stores performed well during the economic downturn. About 95 percent of the food produced in the US or imported into the US last year went through third-party centers, with the food sector being the primary user of the cold stores.
Medical and pharmaceutical research companies, the importance of which the pandemic has highlighted, also rely on climate-controlled environments to protect clinical products and the development and dissemination of therapeutic treatments.
Cold store development has been steady, according to Newmark, with approximately 24 million square feet of new inventory being shipped in each of the past three decades in the United States. Approximately 15 million square feet were completed in the last five years, with Illinois, California, and Texas leading the nation in development.
The industrial sector generally experienced a shift in supply chain activities before COVID-19, and E-commerce increased the growing demand for distribution on the last mile. Inland Empire’s high letting activity in the industrial market from the last nine months of 2020 was carried over to early 2021. The vacancy rate hit a record low of 2.4 percent this year, while asking rent hit a new high of $ 0.73 per square foot.
Newmarks Matt Moore and Wes Hunnicutt DSW represented.
Gregory Cornfield can be contacted at [email protected].