Specialty Pallet Service Takes 225,000 SF at Majestic Business Park

RIVERSIDE, CA—Colliers International has negotiated a long-term lease agreement valued at approximately $5 million for Intelligent Global Pooling Systems (iGPS), operator of the world's first pallet rental service featuring lightweight, 100% recyclable plastic pallets with embedded radio frequency identification (RFID) technology. The company will occupy a full building at Majestic Business Center in Riverside, company officials say.

The lease for 14855 Innovation Drive, totaling some 225,000 square feet, has a term of five years, according to Colliers' executive vice president Scott Heaton, who represented iGPS in the Riverside transaction. Heaton, who is based in the brokerage firm's Commerce, CA office coordinated the transaction with Colliers SVP Robert Bodgero and associate vice president Steven Bodgero of the firm's Detroit office. Majestic represented itself.

Headquartered in Orlando, FL, iGPS has warehousing, storage and distribution centers strategically located throughout the nation. Embedding the radio frequency identification scan labels in its pallets plays a key role in its clients' supply chain management systems.

“These very specialized and high-tech shipping pallets are lightweight plastic, sanitary, and contain a radio frequency ID label that allows companies whose products may have expiration dates – like those in the food or pharmaceutical industries—to know exactly where their shipments are at all times along the supply chain,” said Heaton. “It also allows the companies to deter theft, locate pallets that have gone missing or have been misdirected, and precisely tell their stores or their customers exactly when to expect products.”

According to Heaton, iGPS and other firms involved in support roles to logistics companies are awash in opportunities for new business in Southern California. He said the rush by such companies into the market has challenged brokers to find suitable space for their operations.

“With vacancies as low as they've ever been, and new construction not yet keeping pace with demand, there is a shortage of quality warehousing and distribution space both in the Inland Empire and throughout the region,” said Heaton. “These firms that support the logistics industry are finding great opportunities to grow their businesses here, but they are finding it somewhat more challenging to find suitable buildings.”