News Summary

iDC Logistics has signed two leases totaling 1.1 million square feet in Southern California, significantly boosting manufacturing and distribution capacities. With a dedicated electronics manufacturing hub in the City of Industry, the company aims to enhance supply chain agility and job creation in the region. This expansion follows an earlier acquisition of additional space, indicating a growing demand in the logistics sector despite recent challenges in the industrial market.

California – iDC Logistics, a third-party logistics company with connections to China, has made a significant expansion in Southern California by signing two leases that total 1.1 million square feet for manufacturing and distribution. The new facilities include an 844,311-square-foot space at Alere Property Group’s 5690 Industrial Parkway in San Bernardino and a 260,000-square-foot facility at 19515 East Walnut Drive North in the City of Industry. These leases mark another step in iDC’s growth, as the San Bernardino lease stands out as the second-largest lease in the Inland Empire for 2025 to date.

The City of Industry facility will serve as a dedicated electronics manufacturing hub, where it is anticipated to produce between 12,000 and 15,000 units weekly for an undisclosed client. This strategic location aligns with iDC’s goal of enhancing supply chain agility while promoting job creation and stimulating economic growth within the region.

In a related development, iDC previously secured an additional 350,000 square feet in the same Inland Empire area earlier in the year. This highlights a trend in which logistics companies are seeking larger spaces to accommodate increased demand for manufacturing and distribution capabilities.

Jeff Vertun from CBRE represented iDC in both lease transactions, noting the importance of these agreements in aligning with the commercial strategies of third-party logistics providers in the industrial real estate sector. This continued effort indicates optimism amidst fluctuations in the industrial market within the Inland Empire, where vacancy and availability rates have risen, and rental prices have experienced a decline for eight consecutive quarters.

Despite the challenges, significant leasing activity persists in the region due to its strategic proximity to the Ports of Los Angeles and Long Beach. Earlier this year, EQT secured the largest leasing deal in the area, with a lease of approximately 1 million square feet at the Hesperia Commerce Center One. Other notable leases in the most recent 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 Southern California Logistics Airport (SCLA) recently celebrated its 30th anniversary and has become the largest employment center in the Victor Valley, providing 4,500 jobs. Over its three decades of operation, SCLA has successfully developed 7 million square feet of industrial space for both major manufacturers and warehousing companies, transforming the former George Air Force Base into a vital logistics hub. This development has significantly contributed to the region’s industrial sector, further supported by on-airport operations that encompass the entire aircraft lifecycle, along with various thriving off-airport industries.

Local city leaders recognize the vital role that SCLA has played in revitalizing the local economy and creating job opportunities following the base’s closure. This transformation has coincided with a slight decline in vacancy rates in Southern California logistics buildings exceeding 100,000 square feet, which was reported at 7.1% in early 2025.

In terms of market performance, Prologis reported a decline in annual market rents across Southern California in 2024 for the first time since the financial crisis of 2007-2009. The region saw rents drop by over 20% last year. However, projections for 2025 suggest a modest recovery for market rents and leasing activity as businesses adapt to ongoing economic fluctuations and tariff changes.

Looking ahead, future expansions at SCLA include new air cargo services and upcoming commercial developments such as a 1.3-million-square-foot Goodyear Tire warehouse. These developments indicate a robust and evolving industrial landscape in Southern California, as logistics companies like iDC continue to grow and adapt to changing market conditions.

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iDC Logistics Expands Manufacturing and Distribution in California

News Summary

Deeper Dive: News & Info About This Topic

Author: HERE Mission Viejo