Walmart Bets on Inland Empire's Underlying Industrial Demand in $223M Cold Storage Deal
The Inland Empire remains one of the most strategically critical industrial markets in the country, serving as the primary logistics backbone for the greater Los Angeles basin and the broader Southern California consumer base.
Walmart's $223 million acquisition this week of 1001 Columbia Avenue in Riverdale is a strong signal of long-term institutional conviction in the market and, specifically, in cold chain infrastructure, according to Scott Coyle, JLL managing director.
"Despite broader industrial market softening, demand fundamentals for mission-critical logistics assets remain intact, supported by population density, port proximity, and the region's unmatched intermodal access," Coyle said.
In Q1 2026, the Inland Empire industrial market recorded 1.84 million square feet of negative net absorption, driven by several large-scale vacancies (1M square feet or more) in Moreno Valley, Rialto, Jurupa Valley and Fontana — though all tenants secured alternative space within the market.
Despite this, gross absorption reached 9.6 million square feet, a 13.9% increase quarter-over-quarter, reflecting strong underlying demand from logistics, retail and e-commerce users, according to Coyle.
The construction pipeline remains muted, with only 10.1 million square feet under development and speculative activity near its lowest level in over a decade.
"Cold storage, in particular, is one of the most undersupplied segments within that market — existing facilities are irreplaceable given the significant capital cost and long entitlement timeliness required to develop new temperature-controlled product," Coyle told GlobeSt.com.
California's Inland Empire region is a premier component within the grocery supply network. Walmart Realty, a subsidiary of the world's largest retailer, acquired the 507,000-square-foot cold storage facility from State Street Corp.
Walmart has been leasing the facility since 2010 and will continue to operate it for temperature-controlled distribution.
The site is less than four miles from Interstate 215, California State Route 60 and California State Route 91, providing convenient access to neighboring communities. It features 42-foot clear height, 120 trailer stalls, 98 dock doors, 22,500 square feet of office space and 565 parking stalls.
JLL's Peter McWilliams, Tim O'Rourke and Coyle represented Walmart in the acquisition. Jomar Benoit, Walmart's senior manager of industrial real estate, also played a role.
Source: GlobeSt/ALM