Duke Realty leased a dedicated nearly 200,000 square foot warehouse in the Inland Empire to an e-commerce wholesaler months before the development opened.
The Indianapolis-based REIT has signed a long-term lease with Yahee Technologies on the warehouse at 1532 South Vineyard Avenue in Ontario, Duke said Tuesday. The terms were not disclosed.
Yahee Technologies – or Yaheetech – is based in Shenzhen, China, with its US headquarters in Ontario.
Duke acquired the land for the Ontario warehouse in 2019 for an undisclosed amount, according to records.
The property will have 25 dock doors, clear heights of 36 feet and parking spaces for 120 cars and 21 trailers. Its opening is scheduled for early 2022.
Yaheetech provides furniture, office supplies, sports equipment, beauty products, and more to major online retailers including Amazon, Walmart, and Wayfair.
The growth of e-commerce before and during the pandemic skyrocketed demand for industrial space as vendors had to compete for space to store and distribute goods.
The vacancy rate in the segment was below 1.2% in the third quarter in the Inland Empire, a domestic distribution hub in Southern California. The tight market prompted tenants to take up space before it even became available, according to a quarterly report from Newmark. Tenants whose leases are due for renewal mostly agree to rent increases without negotiations, according to the report.
The average asking rent for industrial real estate in the Inland Empire was $ 0.83 per square foot per month in the third quarter, up from $ 0.68 in the third quarter of last year. In Los Angeles, the segment’s average rent hit $ 1.14 per foot in the last quarter.