Over the past several years, the Inland Empire’s industrial market has become increasingly competitive, with vacancies reaching record lows and sales volumes reaching new highs. In Riverside, one of the region’s tightest markets, an industrial property has recently been placed on the market offering an investor to acquire 111,316 square feet of warehouse space and more than nine acres of land.
The property, which has been listed by Lee & Associates as unpriced, is located at 1850 Atlanta Avenue in the city’s Hunter Business Park. Built in 1976, the property is owned by Crystal Pacific Window & Door Systems, which has occupied the property since its founding 12 years ago.
The listing shows that upon selling the property, the manufacturer would require a 12 to 24 month lease-back.
The property is located near several major freeways, including Interstate 215 and State Roads 60 and 91. The industrial building is also surrounded by several business parks, including Freeway Industrial Park, Crossroads Technology Park and Summit Business Center.
The Riverside market is also home to a large supply of industrial properties, with more than 4 million square feet absorbed in the first quarter of 2022. A first quarter Inland Empire industrial market report from Lee & Associates shows that, overall, the region is continuing to outperform, reaching new records in quarter one. For instance, the Inland Empire saw a new vacancy rate of 0.56 percent, compared to 1.8 percent during the same time last year. At the same time, rental rates in the region have soared, reaching $14.47 per square foot as opposed to $10.25 per square foot in the first quarter of 2021.
With demand reaching new highs in the Inland Empire, investors continue to buy up property throughout the region. In a recent transaction in Riverside, Prologis acquired a 303,100 square-foot asset – located at 6975 Sycamore Canyon Boulevard – for $83.5 million, or about $275 per square foot. In March, an affiliate of IDS Real Estate also acquired a 1.2 million square-foot cold storage facility at 14800 Meridian Parkway for $225 million, or $187.50 per square foot.