News Summary
iDC Logistics has signed two significant leases totaling 1.1 million square feet in Southern California for manufacturing and distribution. The first lease in San Bernardino is the second-largest in the Inland Empire for 2025, while the second facility in the City of Industry will serve as a dedicated electronics manufacturing hub. This expansion highlights the company’s commitment to job creation and support for local economies, amidst a decline in rental prices in the region.
Southern California – iDC Logistics has made a significant move to strengthen its presence in Southern California by signing two leases for a total of 1.1 million square feet designated for manufacturing and distribution. This expansion aligns with the company’s strategy to enhance its operations and support job creation in the region.
The first lease, totaling 844,311 square feet, is located in San Bernardino at Alere Property Group’s 5690 Industrial Parkway. This lease is notably recognized as the second-largest in the Inland Empire for 2025 thus far. The second facility, measuring 260,000 square feet, is situated at 19515 East Walnut Drive North in the City of Industry and is designated as a dedicated electronics manufacturing hub. This facility is expected to produce between 12,000 to 15,000 units per week for an undisclosed client.
Earlier in the year, iDC Logistics secured an additional 350,000 square feet in the Inland Empire, further showcasing the company’s commitment to expanding its operational footprint. The CEO of iDC emphasized that these facilities provide a new, agile supply chain solution and contribute to U.S. job creation and economic growth.
Both deals were facilitated by CBRE’s Jeff Vertun, who noted the importance of aligning the commercial strategies of third-party logistics (3PL) providers within the industrial real estate sector. These lease agreements occur amid a context of fluctuating vacancy rates and availability within the Inland Empire’s industrial market, characterized by a continued decline in rental prices for the eighth consecutive quarter.
Despite these market fluctuations, leasing activity remains robust in Southern California, largely due to the area’s proximity to the Ports of Los Angeles and Long Beach. This geographical advantage facilitates efficient distribution and logistics operations, drawing attention from various industrial stakeholders. The largest leasing transaction in the region so far was EQT’s approximately 1 million-square-foot lease at Hesperia Commerce Center One.
Other significant lease agreements in the past quarter include Burlington’s renewal of 758,180 square feet in San Bernardino and American Beauty Supply’s renewal of 715,433 square feet in Rialto. Furthermore, the Southern California Logistics Airport (SCLA) is celebrating its 30th anniversary, now serving as the largest employment center in the Victor Valley, providing 4,500 jobs.
SCLA has developed over seven million square feet of industrial space to accommodate major manufacturers and warehousing companies since its establishment. The transformation of the former George Air Force Base into a logistics hub has significantly bolstered the region’s industrial sector. The developments at SCLA not only support the entire aircraft life cycle through on-airport operations but also continue to foster a thriving industrial center through off-airport developments.
Local city leaders have underscored the significance of SCLA’s evolution in revitalizing the local economy and generating job opportunities since the base closure. In early 2025, vacancy rates in Southern California for logistics buildings exceeding 100,000 square feet saw a slight decline to 7.1%.
Prologis reported that annual market rents in Southern California fell in 2024, marking the first decrease since the financial crisis of 2007-2009, with a notable reduction of over 20% last year. Experts anticipate a modest recovery in market rents and leasing activity throughout 2025 as supply chains stabilize in response to economic fluctuations and adjustments to tariffs.
Future expansions at SCLA include the introduction of additional air cargo services, along with upcoming commercial developments such as a 1.3-million-square-foot warehouse for Goodyear Tire. This ongoing development in the logistics sector illustrates Southern California’s vital role in the broader industrial landscape.
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