Crow Holdings Signs 250 KSF Tenant at Inland Empire Project
Newmark arranged the long-term transaction.
Crow Holdings Development has signed a 250,369-square-foot, long-term industrial lease in Ontario, Calif., with CTK USA, the U.S. subsidiary of Korea-based logistics/fulfillment provider CTK. Newmark represented the tenant.
A representative from the brokerage firm confirmed to Commercial Property Executive that the distribution fulfillment center at 3100 Hamner Ave. in Ontario is essentially brand new, having been completed just last year.
The property is part of the Ontario Commerce Center and features a 36-foot minimum ceiling height, 38 dock-high and two grade-level loading doors, a 162-foot concrete truck court, 30 trailer stalls, and 178 auto stalls. Other features include a 14,588-square-foot mezzanine, an ESFR fire sprinkler system, 4,000-amp power supply and 3 percent skylights.
The facility is immediately adjacent to I-10 and offers access to I-15 and State Routes 60 and 71. In addition, it’s within 3 miles of UPS Ontario Air, 2.5 miles from UP Intermodal and 5 miles from Ontario International Airport.
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Newmark reported that CTK USA is relocating from a small Ontario property, an approximately 150,000-square-foot facility about 5 miles west, at 2110 S. Parco Ave.
Newmark Executive Managing Directors Josef Farrar and David Kluth and Associate Director Mai Hu, as well as Executive Managing Directors Ron Washle and Mark Kegans, represented the tenant in the transaction with Crow Holdings Development.
Friendly to tenants?
In a prepared statement, Newmark attributed the success of the negotiations to having started the process early “in a very dynamic industrial market.”
The Inland Empire West continues to outperform its eastern counterpart in industrial leasing activity, though less so than in recent quarters, according to a first-quarter report from Newmark.
Leasing is strongest in 100,000- up to 500,000-square-foot properties, which are seeing higher availability and steeper rent declines than other market segments. Newmark added that “current lease term lengths are higher than the historical average as tenants lock in today’s more-occupier-favorable conditions.”
A wave of deliveries pushed the overall vacancy to 7.6 percent, but net absorption in the quarter was a positive 2.2 million square feet.
Just last month, Faropoint acquired a multi-tenant industrial portfolio in Ontario, Calif., for a reported $63.6 million. The 243,394-square-foot portfolio was delivered in 2006 by Panattoni Development, and comprises four Class A buildings.
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