Amazon Leases 2M SF In 2 Inland Empire Transactions
Amazon leased roughly 2M SF in two buildings in Jurupa Valley and Ontario, California, in late March.
Details on the deals are slim, but both were new leases for the e-commerce giant, according to a first-quarter report from Savills. Amazon leased about 1M SF at a PGIM Real Estate and CT Realty-owned property at 6120 Clinker Drive in Jurupa Valley and another 1M SF at 4000 S. Hamner Ave. in Ontario, a Dermody Properties-owned site.
Although the industrial market continues to slow from the record highs of a couple of years ago, big leases are still happening and e-commerce companies are still taking down large blocks.
Amazon said in 2022 it was planning to pull back from its growing national warehouse footprint, but it isn't stopping completely.
Amazon's biggest lease, for just over 4M SF, is for a multistory warehouse, also in Ontario.
Vacancy in the Inland Empire rose to 7.8% in Q1, a 2.9% increase year-over-year. But big deals are still getting done: All five of the top leases in the region in Q1 were over a million square feet. The average triple-net asking rent fell to $1.32 per SF, down 8.2% year-over-year from $1.43.
