AMB Leases Remaining 750,000 SF at Redlands

REDLANDS, CA-AMB Property Corp. says it has leased the remaining 750,000 sf at its 1.3 million-sf Redlands Commerce Center. “A leading manufacturer” will use the facility to expand and consolidate its distribution operations, according to AMB. A third-party logistics provider occupies the remainder of the building, the largest in AMB’s portfolio.

The lease fills up Redlands and drops vacancy in its 6.1 million-sf Inland Empire market to 3%. The announcement did not give the lease terms, however; GlobeSt.com did report the lease terms for the logistics tenant, Weber Distribution, which in October signed a 10-year lease valued at $25.7 million. That deal works out to $4.55 per sf per year and $0.38 per sf per month, which is well below AMB’s average annual base rent in Southern California at the end of 2007, which was $6.53 or $0.54 per sf per month, according to SEC filings.

Completed in 2006, AMB Redlands covers 60 acres at San Bernardino Avenue and California Street in the Inland Empire East submarket. It has a 30-foot clear height, 244 cross-dock doors and parking for 394 vehicles. Sustainable design elements include waste and water conservation systems and energy-efficient lighting fixtures.

As of the end of the year, AMB held a 57% interest in 17.5 million sf in Southern California that was 96.5% leased. In 2007, the portfolio saw 4.9% same-store NOI growth and trailing four-quarter rent growth on rollovers and renewals was 10.2%.