Southern California Logistics Expansion by iDC

News Summary

iDC Logistics has expanded its operations in Southern California by leasing 1.1 million square feet for manufacturing and distribution. This development includes significant leases in San Bernardino and City of Industry. The new facilities aim to enhance supply chain management and boost job creation in the region. With a dedicated electronics manufacturing hub, iDC is set to produce thousands of units each week for an undisclosed client, highlighting its commitment to agile supply chain solutions amid a fluctuating market.

California – iDC Logistics, a third-party logistics company with connections to China, has expanded its operations in Southern California, leasing a combined total of 1.1 million square feet of space for manufacturing and distribution. This major development includes a lease of 844,311 square feet at Alere Property Group’s 5690 Industrial Parkway in San Bernardino and an additional 260,000 square feet at 19515 East Walnut Drive North in the City of Industry.

The San Bernardino lease has been recognized as the second-largest industrial lease in the Inland Empire for 2025 so far. Earlier in the same year, iDC Logistics secured another 350,000 square feet within the Inland Empire. These new facilities are set to enhance the company’s capabilities in supply chain management, as well as foster job creation and economic growth in the region.

Dedication to Electronics Manufacturing

The facility located in the City of Industry is specifically designated as a dedicated electronics manufacturing hub. This site is anticipated to produce between 12,000 to 15,000 units each week for an undisclosed client. The establishment of this manufacturing hub underscores iDC’s commitment to providing an agile supply chain solution, which is crucial for meeting the demands of modern industry.

Market Context and Lease Significance

iDC Logistics’ recent deals were facilitated by CBRE’s Jeff Vertun, who underscored the necessity of aligning logistics companies with commercial strategies in industrial real estate. The Inland Empire’s industrial market has experienced fluctuations recently, with increasing vacancy and availability rates along with a continuous decline in rent prices for the past eight quarters. Despite these challenges, strong leasing activity persists in the region, primarily due to its advantageous proximity to the Ports of Los Angeles and Long Beach.

This region has seen significant leasing activity over the past few months, including notable deals such as EQT’s approximately one million-square-foot lease at Hesperia Commerce Center One, and Burlington’s renewal of 758,180 square feet in San Bernardino. Additional renewals include American Beauty Supply, which leased 715,433 square feet in Rialto.

The Role of the Southern California Logistics Airport

The Southern California Logistics Airport (SCLA) recently celebrated its 30th anniversary. It has established itself as the largest employment center in the Victor Valley, providing around 4,500 jobs. This facility has developed nearly seven million square feet of industrial space to accommodate major manufacturers and warehousing companies since its opening.

The transformation of the former George Air Force Base into a logistics hub significantly bolstered the industrial sector in the region. SCLA supports the entire aircraft life cycle through on-airport operations, while off-airport developments have cultivated a robust industrial center. Local city officials recognize the importance of SCLA’s progression in revitalizing the economy and creating job opportunities in the aftermath of base closure.

Current Market Dynamics

In early 2025, vacancy rates for logistics buildings over 100,000 square feet in Southern California saw a slight decrease to 7.1%. A report from Prologis indicated that annual market rents fell for the first time in 2024 since the 2007-2009 financial crisis, with Southern California experiencing an average rent decline of over 20%. However, there are expectations of a modest recovery in both leasing activity and market rents moving into the latter part of 2025, driven by adjustments in supply chains and fluctuations in tariffs.

Future expansions at SCLA include plans for additional air cargo services and the development of new commercial spaces, including a 1.3-million-square-foot warehouse for Goodyear Tire. These developments are set to further support the logistics and manufacturing infrastructure in Southern California, enhancing its critical role in the national economic landscape.

iDC Logistics Expands Operations in Southern California

News Summary

Dedication to Electronics Manufacturing

Market Context and Lease Significance

The Role of the Southern California Logistics Airport

Current Market Dynamics

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Author: HERE LOS ANGELES