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REDLANDS, CA-Continental Tire North America Inc. has signed a 42-month lease for nearly 498,000 square feet of distribution and warehouse space in a recently completed 600,000-square-foot building at ProLogis Park Redlands. The deal is one of the largest Inland Empire industrial leases this year, according to brokers from CB Richard Ellis who represented Continental.

The lease brings occupancy to 88% at ProLogis Park Redlands, a distribution park that comprises seven buildings for a total of 3.1 million square feet, according to Pat Cavanagh, senior vice president and market officer for ProLogis. Continental will use the space to store and distribute tires to its customers throughout the region.

Continental was represented by the CBRE team of Frank Geraci, Walt Chenoweth, Juan Gutierrez and Patrick Wood of the firm’s Ontario office, and Stuart Ingram of CBRE’s North Carolina office. ProLogis was represented by Bill Heim and Eloy Cova with Lee & Associates; ProLogis was also represented internally.

Chenoweth explains that the lease represents a consolidation of two warehouses in Southern California for Continental, one in Ontario that is also a Prologis-owned building and another in South Gate. ”Tire uses have very specific fire requirements, including specific roof clearance and more complex sprinkler calculations,” Chenoweth points out.

While there were several options available that met the criteria, the Prologis building proved to be the best cost alternative to support Continental’s West Coast distribution needs, he says. Finding a building that met the stringent fire requirements mandated for tire distribution, added to the complexity of the transaction which took over a year to complete, he notes. Continental will begin moving into the Redlands building immediately, and expects to be fully operational in the new space within three months.

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