GigaCloud Expands SoCal Footprint with 833K SF Leases from Prologis & Blackstone

Southern California's Inland Empire is witnessing a surge in e-commerce dominance. GigaCloud Technology, a leading B2B platform catering to large supply chain and e-commerce companies, recently finalized two significant leases in Fontana, Calif., totaling over 833,000 square feet. Savills' latest market report reveals that these properties are owned by two prominent industrial landlords: Prologis (PLD) and Blackstone (BX)'s Link Logistics. The terms of these leases remain undisclosed, and GigaCloud has yet to respond to requests for comment.

Link Logistics and Prologis Facilities

GigaCloud's lease at Link Logistics' 423,388-square-foot facility on 13521 Santa Ana Avenue commenced on Dec. 23, as confirmed by a representative for the landlord. Additionally, GigaCloud secured a 410,000-square-foot lease just a few buildings away at Prologis' 10721 Jasmine Street. These strategic choices position the company near the crossroads of Interstates 10 and 15, situated amidst a vast expanse of warehouses in Fontana Gateway. This prime location lies between Ontario International Airport to the west and Jurupa Valley to the east.

Inland Empire's Leasing Landscape

Collectively, GigaCloud's leases constitute the second-largest leasing agreement in the Inland Empire for the fourth quarter. However, when viewed individually, they rank as the third- and fourth-largest leases signed during the same period, according to Savills' report. The top spot goes to Maersk's massive 1.2 million-square-foot deal in Hesperia, followed by Yita's sublease for 557,200 square feet in Redlands.

Inland Empire's Industrial Market Stability and Projections

Savills notes that the Inland Empire's industrial market experienced stabilization in 2023 amidst shifting conditions. The average asking rent concluded the year with an 8 percent decrease compared to the final quarter of 2022. Looking ahead, rental rates are anticipated to continue softening in the near term, following the addition of 38 million square feet of warehouse space to the market last year.

A Global Presence with Strong Financials

With its corporate headquarters in El Monte, Calif., and additional offices in Hong Kong and England, GigaCloud Technology boasts a global presence. The company reported total revenues of $178.2 million in the third quarter of 2023, showcasing its robust financial performance in the rapidly evolving landscape of supply chain and e-commerce solutions.