Kenco Logistics, North America's biggest privately-owned third-party logistics provider, has opened another warehouse to serve the Los Angeles market in Perris, California.
The Chattanooga-based warehousing and logistics provider is leasing a 579,708-square-foot facility for its 85th warehouse that the company operates across the country. The new facility is a multi-client space with access to major transportation routes and includes foreign trade benefits, as shipments from international markets can be processed and transloaded to trucks or rail delivery to serve across the country.
With the growth of e-commerce and regional distribution models, the commercial real estate firm CBRE estimated last year that demand for warehouse space exceeded supply by 29 million square feet nationwide. Warehouse availability at the end of last year reached its lowest point since 2000,acccording to CBRE.
"With the need for warehouse space growing, we are excited to expand our distribution center network in the highly sought-after California market," said David Caines, Kenco's chief operating officer. "With decades of industry experience and a focus on innovation, Kenco is well-positioned to meet the needs of clients in this high-demand market."
The Perris site is now the fifth location for Kenco in California, joining warehouse spaces in Livermore, Oxnard, Rancho Cucamonga and Chino.
CBRE said warehouse demand in the U.S. has grown for 34 consecutive quarters - the longest since CBRE started tracking the data in 1988.
"Construction has picked up, but the long-term demand drivers of e-commerce and the strong U.S. economy have more than offset that supply gain," said Richard Barkham, CBR's chief economist.
That growth is helping Kenco, which began in Chattanooga as Cherokee Warehouses in 1950. Kenco employs more than 600 workers in Chattanooga.
Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340.