Clarion Partners CEO David Gilbert and Kenco Logistics Services Chairwoman Jane Kennedy Greene
Clarion Partners has leased out the entirety of a massive Perris logistics property to Kenco Logistics Services, which has been building out its Southern California footprint.
Kenco leased the 579,708-square-foot Perris Logistics Center at 3900 Indian Avenue in Perris, a Riverside County city east of Corona. Newmark Knight Frank, which represented Kenco in the deal, announced the lease.
The lease is an expansion for Kenco. It will continue to occupy warehouses in Chino, Rancho Cucamonga, and Oxnard, an indication of the strong demand for logistics services in the Los Angeles area. The firm is owned by the largest woman-owned third-party logistics company in the country.
Clarion developed the Perris Logistics Center, completing work in 2014. The New York-based firm is highly active in L.A. across property types. This year ,Clarion has offloaded a Westwood multiuse development for $375 million and picked up a Culver City development property for $33 million.
Southern California has the strongest logistics and industrial market in the country, thanks largely to the Port of Los Angeles and the Port of Long Beach, the two largest container ports in the country. The market for logistics properties in particular has grown over the last several years, fueled by the continued move to e-commerce.
Tenants have looked to the Inland Empire for deals amid high pricing and low vacancy rates in the L.A. metro area. The Inland Empire now leads the nation in major warehouse leases. The Inland Empire has 73 percent of Southern California’s Class A inventory, according to NKF.
Vacancy rates there are under 5 percent, compared to the sub-2 percent rates currently seen in the L.A. metro area, despite a cooling in the second half of 2018.
NKF executive managing directors Ron Washle and Mark Kegans represented Kenco. Colliers International’s Steve Bellitti and Thomas Taylor represented Clarion.