News Summary
iDC Logistics has secured two major leases totaling 1.1 million square feet in Southern California, enhancing its capacity to meet growing demand for industrial space. The company’s new facilities will serve as an electronics manufacturing hub and reinforce its supply chain solutions while contributing to U.S. job creation. Despite a recent downturn in rental prices and vacancy rates, the region remains a strategic location for logistics due to its proximity to major ports. The Southern California Logistics Airport also marks its 30th anniversary as a key employment center.
California – iDC Logistics, a third-party logistics (3PL) company with connections to China, has expanded its operations in Southern California by securing two significant leases totaling 1.1 million square feet. The company has leased 844,311 square feet at the Alere Property Group’s site located at 5690 Industrial Parkway in San Bernardino and 260,000 square feet at 19515 East Walnut Drive North in the City of Industry.
The San Bernardino lease stands out as the second-largest lease in the Inland Empire for the year 2025 thus far, reflecting the ongoing demand for industrial space in the region. Earlier this year, iDC Logistics also secured an additional 350,000 square feet within the Inland Empire, further solidifying its presence in the area.
The facility in the City of Industry is designated as a specialized electronics manufacturing hub. It is expected to manufacture between 12,000 and 15,000 units weekly for an undisclosed client, showcasing the versatility of iDC’s operations. The CEO of iDC emphasized that these developments contribute to creating an agile supply chain solution and are pivotal in supporting U.S. job creation and fostering economic growth.
Both lease transactions were facilitated by a representative from CBRE, highlighting the significance of aligning commercial strategies and needs of 3PLs within the industrial real estate sector.
The Inland Empire’s industrial market has seen some fluctuations recently. Vacancy and availability rates have been on the rise, and rent prices have experienced a decline for the eighth consecutive quarter. Despite these challenges, the region continues to attract substantial leasing activity, largely due to its strategic proximity to the Ports of Los Angeles and Long Beach, key entry points for maritime logistics.
Notable leases from 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. The largest leasing deal to-date in the region was EQT’s approximately 1 million-square-foot lease at Hesperia Commerce Center One.
An important landmark, the Southern California Logistics Airport (SCLA), is celebrating its 30th anniversary this year. SCLA has become the largest employment center in the Victor Valley, creating around 4,500 jobs over its operational lifetime. Since inception, SCLA has developed over seven million square feet of industrial space accommodating major manufacturers and warehousing companies, supported further by the transformation of the former George Air Force Base into a logistics hub.
Operations at SCLA not only support all aspects of the aircraft life cycle but also have catalyzed the growth of a thriving industrial center in the surrounding area. City leaders highlight that the evolution of SCLA plays a vital role in revitalizing the local economy and generating job opportunities following the base closure.
Recently, vacancy rates for logistics buildings in Southern California of over 100,000 square feet slightly dipped to 7.1% in early 2025. In a significant shift, Prologis reported that annual market rents in the region fell for the first time since the financial crisis spanning 2007-2009, marking a decline of more than 20% last year.
Looking ahead, experts predict a modest recovery for market rents and leasing activity in 2025 as supply chains adapt to economic fluctuations and changes in tariffs. Additionally, future expansions at SCLA are anticipated, possibly including enhanced air cargo services alongside new commercial developments, such as a 1.3-million-square-foot warehouse for Goodyear Tire.
Deeper Dive: News & Info About This Topic
- Commercial Observer
- Victorville Daily Press
- FreightWaves
- CoStar
- JLL Newsroom
- Wikipedia: Southern California
- Google Search: Southern California Logistics
- Google Scholar: Southern California Logistics
- Encyclopedia Britannica: Southern California
- Google News: Southern California Logistics
