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Amazon expands LA footprint with big warehouse lease

E-commerce giant inks 155K sf at IAC Commerce Center in Valencia

Jeff Bezos and the IAC Commerce Center (Credit: Phillip Faraone/Getty Images and IAC Commerce Center)
Jeff Bezos and the IAC Commerce Center (Credit: Phillip Faraone/Getty Images and IAC Commerce Center)

Amazon has inked a lease for 155,000 square feet of warehouse space in the Santa Clarita Valley, as the e-commerce giant continues to expand its massive leasing footprint.

The 116-acre IAC Commerce Center in Valencia includes seven buildings and 1 million square feet of space, according to Commercial Observer, which first reported on the deal. Newmark Knight Frank’s Jeff Abraham, John DeGrinis, and Patrick DuRoss advised IAC on the lease.

IAC acquired the complex at 28820 Chase Place in 2015 for $11.2 million.

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Industrial real estate is one of the few sectors that has held up during the coronavirus crisis. And Amazon has dominated that space; it is one of the biggest tenants in the country. The company leases nearly 154 million square feet of warehouse space, with most of its industrial holdings located on the edge of cities. As of December, the company had an additional 41 million square feet planned.

Los Angeles’ industrial market has been one of the strongest in the US. in recent years — particularly in the Inland Empire — with shrinking supply and rising prices.

Meanwhile, industrial sales volume in L.A. County and neighboring Ventura County reached $4.1 billion last year, rising 6 percent year over year and setting a record.

Last fall, Amazon inked over a dozen leases for brick-and-mortar grocery stores in L.A. locations, part of its nationwide expansion in that space. [CO]Sasha Jones

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