Amazon Continues SoCal Industrial Expansion With 1.2MSF

Amazon’s 1.2MSF SoCal warehouse lease in Inland Empire shows that the e-commerce king is still the retailer to beat.
May 21, 2024
Amazon's 1.2MSF SoCal warehouse lease in Inland Empire
  • Amazon solidifies its SoCal presence with a new 1.2MSF Inland Empire warehouse lease.
  • Amid rising vacancy rates, the e-commerce giant’s move shows confidence in the industrial sector.
  • The company’s continued logistics expansion sets new benchmarks for efficient e-commerce operations.
Key Takeaways

Deal Details

Amazon (AMZN) just secured a 1.2MSF warehouse lease in Southern California’s Inland Empire, as reported on Commercial Observer. Situated on 60 acres in Fontana, CA, the new property is strategically located near Interstate 15, enhancing Amazon’s logistical capabilities in the region. 

The lease of Class A industrial space was inked with CapRock Partners, adding to Amazon’s growing portfolio of sizable industrial leases in the area. These agreements collectively represent a substantial portion of the leased space in the area for 2024.

Market Impact

Despite a rise in the industrial vacancy rate in the region—from 1% in 2021 to 6.3% now—Amazon’s move goes against current market trends.

Amazon’s aggressive expansion strategy, reflected in three separate leases of over 1MSF each in the Inland Empire this year, showcases the e-commerce king’s unparalleled industrial presence in key logistics hubs like SoCal. The acquisitions have also significantly impacted overall leasing activity in the region.

The consistent growth of Amazon’s footprint in the region highlights the company’s proactive approach to securing prime real estate for its operations, setting a benchmark for others in the sector to follow suit.

Why It Matters

Amazon’s succession of substantial leases not only solidifies its footprint in the Inland Empire but also sends a powerful signal to the rest of the industry. The company’s aggressive strategy not only cements its market dominance but also reshapes leasing dynamics and competition in the sector.

And Amazon’s strategic positioning in key logistics nodes sets a benchmark that will be difficult for its competitors to match.

I’m an award-winning copywriter and digital marketing consultant who co-founded Tailored Ink. I help business owners and marketers craft the right messaging and create content at scale to grow their brands, generate leads, convert them into customers—and even get acquired by their competitors. As a member of Young Entrepreneur’s Council (YEC) and a columnist for sites like Forbes, Entrepreneur, and Business Insider, I also help mentor current and aspiring entrepreneurs and marketing professionals.
CRE Daily is a digital media company covering the business of commercial real estate. Our mission is to empower professionals with the knowledge they need to make smarter decisions and do more business.
RECENT NEWSLETTERS
View All
CRE Mortgage Debt Spikes Despite Fewer Originations
June 20, 2024
READ MORE
Retail Sales Decline Again, Strengthening Argument for Rate Cut
June 19, 2024
READ MORE
NYC Board Approves Rent Hike for 1M Stabilized Apartments
NYC Board Approves Rent Hike for 1M Stabilized Apartments
June 18, 2024
READ MORE
Yardi: U.S. Multifamily Market Outlook – Summer 2024
June 17, 2024
READ MORE
Join 65k+
  • operators
  • developers
  • brokers
  • owners
  • landlords
  • investors
  • lenders

who start their day with CRE Daily.

The latest news and trends in commercial real estate delivered to your inbox. Get smarter about what matters in just 5-minutes or less.