An industrial condominium at 13571 Vaughn Street in San Fernando, California, has hit the market for $31.75 million, translating to approximately $315 per square foot. The property, which spans 101,059 square feet, includes 4,028 square feet of office space and 97,031 square feet of warehouse area, making it an opportunity for owner/users or investors in the warehousing and distribution sectors.
Newbridge Real Estate Services, which is marketing the property on behalf of the owner, announced that the facility — built in 1964 with durable concrete tilt-up construction — sits on 2.62 acres of land. According to the marketing flyer, the site features a host of modern upgrades, including a new roof installed in 2023 and solar panels that improve energy efficiency. Other features include a clear height of 20 to 28 feet, 11,000 square feet of covered loading space with 20-foot clearance, and a power supply of 600 amps at 277/480 volts.
The industrial property offers truck-friendly infrastructure. There are 13 dock-high loading spaces equipped with levelers, four 12×14 dock-high truck doors, and a large asphalt and concrete-fenced yard. Based on the flyer, this yard provides additional income potential or can be utilized for parking and storage. The property also includes 100 parking spaces, ensuring ample capacity for employees, customers, and delivery vehicles.
Located in the heart of Southern California’s logistics and industrial network, this industrial condominium is close to four major freeways: Interstates 5, 405, 210, and Highway 118. It is less than 10 miles from Burbank Airport, under 30 miles from Los Angeles International Airport (LAX), and within 50 miles of the Port of Long Beach and 60 miles of Port Hueneme. These attributes make it suitable for warehousing, distribution, and light manufacturing businesses.
The listing, led by Darin Arrasmith of Newbridge Real Estate Services, highlights the scarcity of industrial properties in the region. It notes that Los Angeles remains a highly sought-after industrial market with a limited supply of new development. According to the flyer, much of the existing inventory in the region was constructed before 2000, with many properties initially designed for manufacturing rather than modern logistics or distribution uses.
The industrial market in Los Angeles County underwent a marked transformation in 2024, driven by record-high vacancy rates, an influx of new construction, and softening rent growth, according to a report by NAI Capital Commercial. Developers completed 5.1 million square feet of industrial space, an 11.1 percent decline from 2023, which contributed to a 160-basis-point increase in the vacancy rate, now at 6.0 percent. Negative absorption trends left 34.3 million square feet of vacant space compared to Q4 2022.
Port activity, a key driver of industrial demand, remained strong, with a 22.1 percent year-to-date increase in cargo volumes at the Ports of Los Angeles and Long Beach. However, developers adjusted to market dynamics by slowing construction, resulting in a 38.0 percent year-over-year decline in new projects underway by the end of 2024. Additionally, average asking rents fell 13.7 percent year-over-year to $1.45 per square foot, and sales volume declined by 33.5 percent despite a modest 5.7 percent increase in median sale prices.
Leasing and sales activity also reflected shifting market fundamentals. Available sublease space reached an all-time high, totaling 12.8 million square feet by year-end, a 44.4 percent increase from 2023. Leasing volume dropped 22.7 percent quarter-over-quarter, while sales volume showed a quarterly rebound of 39.3 percent, though year-to-date totals remained below 2023 levels. Elevated interest rates and moderating demand played a significant role in market recalibration, with the median cap rate rising to 5.4 percent.
Despite challenges, e-commerce continues to support long-term demand, and the industrial market offers tenants increased negotiating power amid ample supply. As the Federal Reserve slows its pace of rate cuts in 2025, pricing, leasing, and sales are expected to continue adjusting to economic and market conditions.
