German luxury auto manufacturing giant, BMW, will be moving operations of the Ontario distribution center/ warehouse to the outskirts of Redland, California. Construction of the new warehouse will start in the second quarter of 2013 and is expected to be completed by 2014.
The property is being developed by Prologis, a major global real estate firm. The new center will be a 325,000 square feet warehouse, located at the southwest corner of Nevada Street and Almond Avenue in California. The site will also include an additional 96,000 square feet, which will enable the company to expand its premises if needed in the future, reports The Press Enterprise.
Warehouse construction in Southern California has increased. Along with the BMW project, Prologis has its plate full with other building projects.
"There's a very limited supply of larger Class A industrial space in most major markets in the country. And, in the Inland Empire vacancy rates have dropped well into to single digits." Kim Snyder, regional president of Prologis, said in an interview to Press Enterprise.
Anyhow, Prologis is also building another warehouse space measuring around 282,000 square feet for BMW in Lancaster Business Park, Dallas, Texas. The site is just adjacent to the 1.2 million square feet distribution center of Quaker Sales and Distribution Inc, which is also being developed by Prologis.
The Lancaster Business Park has the largest warehouse concentration in North Texas. The business claims around 2.1 million square feet of land area and many projects are under construction in the hub.
"Most of those customers view Prologis Park 20/35 to distribute not just to Dallas but with easy access to Houston, Austin and San Antonio - picking up the bulk of the population in Texas. There are great trends in the Dallas market. Not only do we see the pipeline continuing to stay full on bulk deals, but beginning last year we saw the return of smaller users - a different segment of the market." Jeremy Giles, President of Prologis' Dallas based operations said to Dallas News.
Meanwhile, BMW is gearing up to showcase its new "The 2013 BMW Alpina B3 Turbo" at the Geneva Motor Show, to be held from March 5 to 17 in Geneva.