RIVERSIDE COUNTY, CA
Trammell Crow Company and Clarion Partners Sign More Than 1MSF in Leases at Inland Empire's Knox Logistics Center
July 26, 2022
Two Deals Totaling 1.1MSF+ Signed, Bringing Two Spec Development Industrial Facilities to 100% Leased
Trammell Crow Company (TCC), a global commercial real estate developer and its JV partner, Clarion Partners LLC., announce that two leases totaling more than 1.1 million square feet have been signed at Knox Logistics Center in Southern California’s Inland Empire. A logistics services company signed a 692,645-square-foot lease to occupy all of Knox III, and Burlington Stores signed a 410,350-square-foot lease to occupy all of Knox IV.
“These two leases continue to prove our development strategy, which is founded on the idea that sophisticated users – like retailers, e-commerce or logistics firms – are attracted to modern facilities that feature the best design and are strategically located in key logistics corridors,” said Tom Bak, Senior Managing Director for Trammell Crow Company’s Newport Beach operations, which encompasses markets across Southern California, San Diego and Las Vegas. “We are pleased to welcome these new tenants to Knox Logistics Center. Their combined footprint at the center brings both Building III and IV to 100% leased ahead of delivery in Q3.”
Currently, there is 2.66 million square feet of Class A logistics space under construction at the 249-acre Knox Logistics Center. The overall project is an eight-building industrial development that will encompass roughly 4.7 million square feet once complete. The initial buildings at Knox Logistics Center – Knox I and Knox II – were delivered in 2013 and 2018, respectively. The project is located on the I-215 South Corridor along the 215 freeway at the intersection with Cajalco Expressway directly across from March Air Reserve Base in Riverside County’s Mead Valley.
Knox III is a 692,645-square-foot building at 22305 Old Oleander Ave. in Perris, Calif. The building is situated on 34.5 acres and features 11,000 square feet of office space, 40-foot clear heights, ESFR sprinklers, 250 auto parking stalls and 247 trailer parking stalls. The cross-dock loading facility includes 106 dock-high loading doors, four ground-level doors and a 185-foot secured concrete truck court. The development is slated to be delivered in September 2022.
Knox IV is a 410,350-square-foot building at 22405 Old Oleander Ave. in Perris, Calif. The building is situated on 19.5 acres and features 3,900 square feet of office space, 37-foot clear heights, ESFR sprinklers, 236 auto parking stalls and 80 trailer parking stalls. The front-loading facility includes 51 dock-high loading doors, two ground-level doors and a 185-foot truck court. The development is slated to be delivered in July 2022.
Bak adds, “There continues to be a strong appetite for Class A logistics space across the country, but that is especially true in the Inland Empire. This area of Riverside Country is near a talented and large pool of labor, meaning that companies want to expand their footprint here. We expect to continue to see demand for this type of space rise, along with demand for larger facilities, like Knox Logistics Center VII, which is the second 1.1-million-plus-square-foot building that we have developed with Clarion in the Inland Empire.”
Construction is also underway on two additional speculative buildings that are available for lease within the overall Knox Logistics Center: Knox VI, a 418,000-square-foot facility on 20.3 acres slated to deliver in August 2022, and Knox VII, a more than 1.1-million-square-foot facility on 72.5 acres expected to deliver in July 2022.
TCC’s Newport Beach team, which operates in markets across Southern California, San Diego and Las Vegas, is one of the most active industrial developers in the region. In the last 18 months, the team has developed roughly six million square feet of industrial space in key Inland Empire and Las Vegas logistics markets, in what is emerging as a crucial corridor between Southern California and Southern Nevada.
Colliers International represented both tenants in their lease transactions. The leasing team representing the ownership JV in both deals was Lee & Associates’ Michael Chavez, David Nguyen, Jeff Smith, and Austin Hill.
About Clarion Partners, LLC
Clarion Partners, LLC, has been a leading real estate investment manager for 40 years. Headquartered in New York, the firm maintains strategically located offices across the United States and Europe. With $75.9 billion in total real estate and debt assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to 500 institutional investors across the globe. More information about the firm is available at www.clarionpartners.com.
Trammell Crow Company
Trammell Crow Company (TCC) is a global commercial real estate developer and wholly-owned subsidiary of CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas. Founded in 1948, TCC has developed or acquired nearly 2,900 buildings valued at $75 billion and over 655 million square feet. As of September 30, 2023, TCC had $15.4 billion of projects in process and $14.5 billion in its pipeline. It employs 650 professionals in 28 major cities throughout the United States and Europe. The company serves users of and investors in office, industrial/logistics, healthcare, life sciences and mixed-use projects, as well as multi-family residential through its operating subsidiary High Street Residential. For more information visit www.TrammellCrow.com.