iDC Logistics Expands Operations with Major Leases in SoCal

News Summary

iDC Logistics has signed two significant leases totaling 1.1 million square feet in Southern California, boosting its manufacturing and distribution operations. The lease in San Bernardino is the second-largest so far for 2025, while the City of Industry facility will serve as an electronics manufacturing hub. This expansion is part of iDC’s strategy to enhance its logistics presence in the region amid rising demand. As the local industrial market shows fluctuations, leasing activity remains robust, aided by proximity to major ports.

California – iDC Logistics, a third-party logistics company with connections to China, has recently signed two significant leases in Southern California, amounting to 1.1 million square feet of space for manufacturing and distribution operations. This expansion highlights the growing logistics activity in the region, particularly in response to increasing market demands.

The new leases consist of 844,311 square feet at Alere Property Group’s facility 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 is noted as the second-largest in the Inland Empire for 2025 so far, indicating the significance of this deal for the region’s industrial landscape.

Earlier this year, iDC Logistics had already secured 350,000 square feet in the same Inland Empire area, thereby demonstrating its aggressive strategy to enhance its logistics footprint in Southern California.

The facility in the City of Industry is planned to serve as a dedicated electronics manufacturing hub, with projected output between 12,000 to 15,000 units per week for a currently undisclosed client. This new establishment is expected to provide an agile supply chain solution while simultaneously contributing to job creation and economic growth in the region, as emphasized by the company’s CEO.

In both lease transactions, iDC was represented by Jeff Vertun from CBRE, who noted the importance of adapting to the commercial strategies of third-party logistics (3PL) providers in the industrial real estate sector.

The industrial market in the Inland Empire has been experiencing notable fluctuations as of late, with rising vacancy and availability rates. This trend has accompanied a decline in rental prices for the eighth consecutive quarter. Nevertheless, significant leasing activity remains prominent in the region, largely due to its strategic proximity to the Ports of Los Angeles and Long Beach.

Noteworthy leasing activities from recent months include EQT’s substantial 1 million-square-foot lease at the Hesperia Commerce Center One, along with Burlington’s 758,180-square-foot renewal in San Bernardino and American Beauty Supply’s 715,433-square-foot renewal in Rialto. These developments underline the ongoing investments in the local logistics and manufacturing sectors.

Meanwhile, the Southern California Logistics Airport (SCLA) has reached its 30th anniversary, emerging as the largest employment center in the Victor Valley and housing approximately 4,500 jobs. Since its inception, SCLA has developed seven million square feet of industrial space catering to major manufacturers and warehousing companies. The transformation of the former George Air Force Base into a logistics hub has significantly contributed to the growth of the region’s industrial sector.

On-airport operations at SCLA have supported the entire lifecycle of aircraft, while off-airport developments have fostered a thriving industrial center. City leaders have recognized the significance of SCLA’s evolution in revitalizing the local economy and creating more job opportunities following the base closure.

Current data indicates a slight decline in vacancy rates for logistics buildings in Southern California over 100,000 square feet, now at 7.1% as of early 2025. Additionally, Prologis reported that annual market rents fell in 2024, experiencing their first decline since the financial crisis of 2007-2009, especially in Southern California where rents decreased by over 20% last year.

Looking ahead, reports suggest a modest recovery in market rents and leasing activity in 2025 as supply chains undergo adjustments in response to economic changes and tariff fluctuations. Future developments at SCLA may include expanded air cargo services along with new commercial projects, such as a 1.3-million-square-foot Goodyear Tire warehouse, contributing further to the region’s logistics capabilities.

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