Southern California continues to see positive trends in sales and development in the industrial real estate sector. A vacant manufacturing and distribution facility has recently hit the market to potentially add to this data. The asset encompasses a total of 49,861 square feet on a lot of 2.52 acres located at 1141 California Ave in Corona. The asking price is $17.45 million, or approximately $350 per square foot.
The marketing efforts are led by Daum Commercial Real Estate’s Inland Empire Team of Executive Vice Presidents Noah Samarin and Charles Johnson. Daum is marketing the property on behalf of its owner, an entity linked to Corona Dkcb Realty, according to public property records. The listing notes that the property is listed both for sale and for lease.
The single freestanding warehouse property was refurbished during this year. The structure offers both dock high and grade level loading capabilities with two loading docks and six dock high doors, catering to the needs of potential distribution users. Additionally, it features heavy power supply, which can potentially be expanded, and a sprinkler system capable of accommodating a wide range of manufacturing purposes.
The property is centrally located providing access to Orange County and the Inland Empire markets in Southern California. The asset’s location in Corona is right off the US Interstate Highway 15 and accessible from California State Route 91 providing it with local and regional transportation links.
Despite a recent dip in sublease rents, the Inland Empire industrial market concluded the second quarter on a positive note, displaying positive leasing fundamentals. As per the Colliers’ Inland Empire Industrial report for the second quarter of 2023, approximately eight million square feet of space was leased during this period, maintaining a pace similar to the previous quarter.
For the sixth consecutive quarter, net absorption has fallen short of outpacing new supply. Colliers predicts this trend will persist, primarily due to the substantial historical development pipeline in the region, where not all newly constructed facilities are occupied upon completion. Nevertheless, 2023 still holds promise with the arrival of several sizable pre-leased projects. These are expected to boost net absorption, potentially reversing the annual total into positive territory.
The report notes a number of sales transactions in the region during the second quarter. The two most significant sales in San Bernardino were the acquisition of a 457,000-square-foot facility at 531 Central Ave. by Oaktree Capital Management for slightly over $121 million, approximately $265 per square foot, and the purchase of a 250,000-square-foot asset at 5685 Industrial Parkway by Dermody Properties for around $66 million, approximately $263 per square foot.
Given the challenging economic and capital markets environment in the United States, Colliers anticipates that investors will continue to exercise caution until the economy stabilizes. However, with historically low vacancy levels and positive rent growth trends emerging, the broader Inland Empire area remains an attractive option for investors seeking to expand their industrial presence in Southern California.
