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February 21, 2017

Major growth turns Inland area to mega-warehouse empire

The Press Enterprise

Richard K. De Atley

The Inland area ranks No. 2 in the nation for million-square-foot-plus "megawarehouses," according to commercial real estate company CBRE Group.
The buildings, mostly used as fulfillment or distribution centers as part of the growing e-commerce for companies such as Amazon, have proliferated throughout the country in recent years.
Not always welcome - Riverside residents are planning their next move after the City Council last week approved construction of a 1.4 million-square-foot distribution center in the Sycamore Highlands section of the city - development of the huge buildings has increased since 2010.
That year is the starting point CBRE used in its survey, which has Philadelphia ranked No. 1 in the nation, with 16 qualifying buildings that total 19.7 million square feet.
The Inland area is next, with 13 buildings that combine for 15.4 million square feet. Dallas/Fort Worth is the next area, also with 13 buildings, but a total of 14.7 million square feet.
"The massive warehouses and distribution centers have sprouted from Southern California to Philadelphia, clustering around metro areas that provide the mix of road, rail and sea access that e-commerce users covet," the CBRE report stated.
The report also notes that in addition to the 13 buildings in use for the Inland area, six buildings that total another 6.4 million square feet are under construction.
"The Inland Empire continues to dominate in attracting large e-commerce users in the region due to the availability of brand-new, state-of-the-art facilities," Kurt Strassman, senior managing director of CBRE's Orange County operations, said in a statement.
"No other region has access to this much new product so close to an international port, 20 million people within 60-90 minutes, and a deep business infrastructure with massive amount of consumer purchasing power," the statement said.
Amazon has three current fulfillment centers that exceed 1 million square feet, one each in San Bernardino, Eastvale and Moreno Valley. Amazon earlier this month said it would open another million-square-foot facility in Eastvale.
Construction projects currently under way include the 1.49 million-square-foot Crossroads Logistics Center in Beaumont; the 1.2 million-square-foot Duke Perris Logistics Center in Perris; the 1-million-square-foot Citrus Commerce Center in Fontana; and the 1-million-square-foot Meridian Business Park in Riverside, according to commercial real estate firm Kidder Mathews.

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