Trammell Crow Co. and Clarion Partners LLC continue their joint venture partnership in Riverside County, Calif., with the commencement of construction of another big-box industrial development. The partners recently broke ground on Knox Logistics VII, a Class A project that will bring 1.1 million square feet of speculative space to the Inland Empire.
Carrying the address of 19115 Harvill Ave., Knox Logistics VII will occupy 73 acres in a business park setting along the I-215 Corridor. The highly functional facility will offer state-of-the-art features designed to attract and accommodate the needs of today’s sophisticated e-commerce and logistics users.
Knox Logistics VII kicks off 10 years after TCC and Clarion partnered on the acquisition of land for the development of their first speculative big-box project in the I-215 Corridor—I-215 Logistics Center. The approximately 1.3 million-square-foot project, developed at a cost of roughly 80 million, would go on to be leased in its entirety by Amazon and hold the distinction of being the first million-square-foot-plus spec industrial project developed during the market recovery following the Great Recession.
Inland Empire thrives—still
The Inland Empire is a haven of big-box industrial, and it appears too much is never enough. The market closed the first quarter of 2021 with a record-low vacancy rate of 1.9 percent and positive net absorption totaling 10.3 million square feet, according to a report by Colliers International.
The current dynamics bode well for new projects like Knox Logistics VII. “The Ports of L.A. and Long Beach continue to work their way through the congestion of cargo ships that can be seen from much of the Southern California coastline,” according to the Colliers report. “As vacancy continues to decline, under construction projects will continue to see multiple offers well before construction is completed.”
Cushman & Wakefield is overseeing leasing for Knox Logistics VII. Trammell Crow and Clarion expect to complete construction of the project in 2022.