The Inland Empire industrial market has continued to show signs of resilience in the fourth quarter of 2023, with the Coachella Valley submarket emerging as a regional leader over the last few years. Within this robust submarket, a 100,381 square foot distribution facility has been put on the market at a price of $18.933 million, or approximately $189 per square foot. The industrial property is located on 6.98 acres of land at 82585 Showcase Pkwy in Indio.
The marketing efforts are led by CBRE’s team of First Vice President Sammy Cemo and Vice Chairman Anthony Delorenzo. The property is currently owned by an entity that shares an address with Greenlaw Partners, according to public records.
The Class B industrial warehouse building was originally constructed in 2006. The property consists of a single-story building with 25-28’ clear height that includes ten ground level doors and four dock high doors. The current cap rate is listed at 6.25 percent.
The marketing materials state the property is currently fully occupied by three tenants, namely Next Level Door & Millwork Inc, TruTeam of California and Elite Anywhere Supply Chain Solutions. All three tenants have been leasing the property for an extended period of 10 to 15 years and have all recently signed lease extensions. The current weighted average lease term is approximately seven years, with four percent annual rent increases in the lease agreements.
The property is located along US Interstate Highway 10 with immediate access from Jackson Street. The location also offers easy access to a variety of retail, hospitality and residential amenities in the surrounding area.
CBRE recently reported that the Inland Empire industrial market vacancies, availability and development have all rebounded to levels seen before the pandemic, with market constraints easing and the unsustainable rapid growth of the past three years slowing down. The CBRE Inland Empire Industrial Figures Report for Q3 2023 states that concerns about declining occupancy in the second quarter of 2023 were brief, as tenants began occupying previously committed new spaces in the third quarter of 2023. A significant shift occurred in the market as tenants moved away from solely seeking high-quality spaces to prioritizing value. There’s been a resurgence in interest among tenants for Class B and sublease spaces, which offer more affordable rates despite newer options being accessible.
Moreover, CBRE reports that the Coachella Valley total market size exceeds 14.8 million square feet, with a vacancy rate of 2.4 percent, while the whole of the Inland Empire has a current vacancy rate of 3.5 percent. There are also only 12 buildings in the Coachella Valley spanning 100,000 square feet or more and a complete absence of vacancies within that specific segment.
