Los Angeles

CBRE Investment Management Fund Acquires 364 Acres in Key Inland Empire Location to Develop First Phase of a State-of-the-Art Logistics Project

Investment Addresses Undersupply in Market

February 28, 2023

Rendering of Speedway Commerce Center logistics development

Media Contact

Pam Barnett

Senior Director, Corporate Communications

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A fund sponsored by CBRE Investment Management has invested in 364 acres of land located in Southern California’s Inland Empire. The land is currently earmarked for the first phase of Speedway Commerce Center, a planned, multi-building, state-of-the-art logistics project located at 9300 Cherry Ave. in Fontana, California. The Project, which is entitled for up to 6.6 million square feet of logistics space, addresses the continuing high demand for well-located, modern logistics assets in the market.

Situated in the heart of the Inland Empire West with immediate access to Interstates 15 & 10 and the San Bernardino BNSF Intermodal Yard, the Project offers unparalleled regional access for Fortune 100-caliber tenants and e-commerce users. Speedway Commerce Center will benefit from its location in one of the strongest and most dynamic distribution markets in the U.S. Its proximity to both the ports of Long Beach and Los Angeles, the dense population centers of Southern California and robust transportation and infrastructure systems provides for long-term viability of the Project.

The Project will feature highly functional, larger-scale logistics buildings with market-leading specifications to appeal to a wide range of users, including 40-foot clear heights, cross-dock loading, 185-foot concrete truck courts, ample employee parking, optimal circulation, and more than 100 acres for excess trailer parking.

“The availability rate for Class A buildings larger than 500,000 square feet in the entire Inland Empire is 0%,” said Mary Lang, Portfolio Manager, CBRE Investment Management. “Speedway Commerce Center offers an extremely rare opportunity for us to invest in what we believe is irreplaceable real estate of scale in one of the top distribution markets in the world. We will be able to provide brand new product in the most undersupplied size segment within this high-growth infill market.”

The Inland Empire boasts some of the strongest investment fundamentals of any logistics market in the nation with a vacancy rate of 1.2% and rent growth of 35.4% in 2022. The Fontana submarket in particular has a vacancy rate of 0.3% and rent growth of 36.9% over the same period.

About CBRE Investment Management

CBRE Investment Management is a leading global real assets investment management firm with $149.3 billion in assets under management* as of December 31, 2023, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2022 revenue). CBRE has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.