By Chris H. Sieroty
Special to The Press-Enterprise
A new warehouse planned in Ontario appears to be another distribution center for Atlanta-based Home Depot Inc.
ProLogis announced late Tuesday that it would begin construction in December on a warehouse at the southwest corner of Etiwanda Avenue and Fourth Street in Ontario within its Crossroads Business Park, a 281.7-acre master-planned project near the interstates 10 and 15 intersection.
ProLogis declined to identify who would occupy the 667,000-square-foot facility, but documents filed by the developer with the city’s planning department show the occupant will be Home Depot. Messages left with Paula Drake, senior manager of corporate communications with Home Depot, were not returned.
Earlier this year, Home Depot moved into a 650,000-square-foot building at ProLogis Park Redlands. Home Depot also operates a distribution center in Mira Loma.
“The retailer is a longstanding customer, and we are pleased to once again meet the company’s needs for distribution space,” said Richard Strader, ProLogis Global Corporate Services’ senior vice president, in a statement. “Upon completion of this facility, the company will occupy approximately seven million square feet of ProLogis distribution space in 13 markets across the country.”
ProLogis said the project would be built on a 55-acre parcel within the development. Terms of the deal were not released, but with an average construction price in the region of between $70 to $90 per square foot, the new facility at the low end of the scale would cost approximately $46 million to construct. It is scheduled to be completed next fall.
With an industrial vacancy rate of 9 percent at the end of the third quarter and construction of new industrial facilities all but halted since the recession took hold in late 2008, a new project has been welcomed by Ontario officials.
“Any construction jobs or permanent jobs in an (economic) cycle like this are welcome,” said Ontario City Manager Gregory Devereaux. “It will be occupied by a nationally known tenant and a builder that has developed other projects in the area.”
Devereaux said it also demonstrated ProLogis’ “faith in our market.”
Based in Denver, ProLogis has about 45 million square feet of industrial space in Southern California. At Crossroads Business Park, Home Depot would be located next to buildings occupied by Gillette and Oakley Inc.
By Chris H. Sieroty