Amazon is doubling down on the online retail giant’s Santa Clarita Valley investment, following the official announcement the company signed another lease for a second distribution center in the area.
Santa Clarita officials confirmed in May the company is leasing an approximately 100,000-square-foot building at The Center at Needham Ranch, a new development still under construction just north of the Newhall Pass off of Highway 14.
Amazon officials later confirmed the signing of a second lease in phase two at the IAC Commerce Center, located north of Highway 126 in Valencia.
“We are thrilled that Amazon has chosen to locate not one, but two facilities in the Santa Clarita Valley at a time when the need for e-commerce is exploding,” said Holly Schroeder, president and CEO of the SCV Economic Development Corp. “E-commerce is growing at unbelievable rates and is an important part of the economy. At this time, when many SCV businesses are facing uncertainty, it’s great to see major players, like Amazon, bringing new jobs to the region.”
The 1.3-million-square-foot IAC industrial park is set to consist of seven industrial buildings on 116 acres, with phase one already completed and fully occupied.
Newmark Knight Frank, or NKF, recently announced it had negotiated a 155,680-square-foot industrial lease to be used as a regional distribution center by the tenant, which was later confirmed to be Amazon.
The building, located at 28820 Chase Place, includes two adjacent lots totaling 23 acres, planned to be used as parking for the warehouse employees, according to NKF, who advised the landlord, IAC Properties, on the lease.
The facility features 32 dock-high positions, 30-foot ceilings, one ground-level loading door, heavy power and abundant parking, according to NKF.
NKF’s Executive Managing Director John DeGrinis and Senior Managing Directors Jeff Abraham and Patrick DuRoss represented IAC on the lease.
“E-commerce continues to be a major driver of economic activity, as consumers shift more purchases online,” DeGrinis said in a prepared statement. “IAC’s strategic location within the submarket and unmatched dock-high loading provides excellent access to those consumers. The tenant was also looking for adjacent land to accommodate a high parking requirement, which can be nearly impossible to find elsewhere in infill Los Angeles.”
“These last-mile distribution centers are a critical component to the e-commerce machine with consumers demanding shorter delivery times for their online purchases,” added DuRoss in the statement. “Additionally, we are excited to see the many jobs this will bring for the surrounding area.”
Amazon is expected to start operations in the third quarter of 2020 with 300 employees in addition to a fleet of delivery drivers.