IE Business Daily Business news for the Inland Empire.
Third-party logistics companies are dominating one sector of the Inland Empire industrial market.
Those companies, which businesses hire to handle their supply chain responsibilities, account for nearly 60 percent of all “big-box” transactions in Riverside and San Bernardino counties, according to a report by CBRE.
No other U.S. industrial market has that much big-box space – defined as any warehouse or distribution center of at least 200,000 square feet – occupied by third-party suppliers, the report states.
Businesses are now more willing to use third-party providers to avoid having to pay for material handling, technology and automation, according to Ian Britton, senior managing director with CBRE.
“At the end of the day, it’s about reducing delivery times to customers by using a 3PL network … to access Southern California’s 24 million people as soon as possible,” Britton said in a statement.
More than 30 million square feet of big-box space has been leased in the Inland region during the last four years, and that trend is expected to continue this year, the report states.
