Ecommerce stores warehouse

Amazon signs its largest US warehouse lease: Reports – Trade Observer

Amazon placed its largest order to date.

The e-commerce titan has signed a 4.1 million square foot lease for what will be its largest warehouse in the nation, located in the nation’s top industrial market: Southern California. Inner Empire. The property is part of an industrial development in the town of Ontario in San Bernardino County, according to The real dealwhich cited a report by CBRE.

Prologis, known as Amazon’s favorite landlord, happens to be the only developer currently building a 4.1 million square foot warehouse in Ontario. The five-story project is slated to open next year on Merrill Avenue between South Grove and Carpenter Avenue. This is part of a larger development plan named Merrill Mall which will include over 7 million square feet of distribution center warehouse uses and a 1.2 million square foot business park.

The development is close to other existing major logistics facilities and distribution centers, including walmart, fedex and Kenco, because Ontario is a prime target in the first market. Earlier this year, Home deposit signed a lease to occupy a 1.1 million square foot structure in Ontario Ranch planned community by Clarion Partners.

Amazon was indeed Prologis’ top customer, with 31 million square feet of leased space, according to a Q3 2021 report from Prologis. But for the past two years, Amazon has said it intends to largely own its expansive fulfillment space, rather than renting it out.

Prologis is the largest publicly traded industrial real estate investment fund with nearly 1 billion square feet in 19 countries, and Amazon accounts for roughly 4.8% of its total rent.

Southern California – including the Inland Empire, Los Angeles County, Orange County and up to Ventura County – has 1.3 billion square feet of industrial space with 42.5 million additional square feet under construction, depending on Savills. But demand is so strong that the region’s industrial vacancy rate fell to 1.6% after the first quarter.

Gregory Cornfield can be reached at [email protected].