Commercial Real Estate

Available: ±5,000 SF to ±20,847 SF

Lot Size: ±40,847 SF of Land

Sale Price: $7.9M

Lease Rate: $0.85 / SF Gross for the first 6 months,$1.70 thereafter

Term: 3-5 years

Zoning: I-C

APN#: 8550-005-061

• High Image/Freeway Visibility

• Two (2) Dock High

• Three (3) Ground Level Doors

• 28’ Minimum Clearance Height

• 1240 Amps

• Large Fenced / Paved Yard

• 42 Parking Spaces

• See Brochure for 3D Matterport Virtual Tour

GDP Growth: 

• U.S. GDP grew at an annualized 2.8% in Q3, slightly below Q2's 3%.
• Consumer spending rose 3.7%, the fastest since Q1 2023, but residential investment dropped 5.1%, its second consecutive decline.
• Inflation hit the Fed's 2% target, with unemployment steady near 4%.

 Employment: 

• 254,000 jobs were added in September, the largest gain in six months.
• The unemployment rate fell to 4.1%, while wages increased 4% year-over-year.
• Upward revisions to prior months' job numbers highlight ongoing labor market resilience.

 Monetary Policy: 

• The Federal Reserve cut interest rates by 0.5% in September, lowering the federal funds rate to 4.75%-5%.
• Strong job data makes further significant rate cuts unlikely.
• Fed Chair Powell emphasized balancing inflation control with stable employment.

 Global Economy: 

• IMF projects global growth of 3.2% for 2024-2025, with risks from regional conflicts and trade disruptions.
• Emerging Asia sees growth upgrades due to semiconductor demand, while Europe faces downgrades.
• Global inflation is expected to decline from 6.7% in 2023 to 5.8% in 2024 and 4.3% in 2025.
• Long-term growth remains constrained by aging populations and weak productivity.

• The Inland Empire West submarket experienced a stall in net activity during Q3.
• Subleases and renewals dominated top lease transactions.
• Vacancy rates increased slightly, while availability trended downward.
• Pricing remained steady, but tenant concessions (e.g., free rent, tenant improvements) have risen and are now widely expected.
• Industrial construction slowed significantly, with the development pipeline at 43% of its year-over-year level.
• Institutional interest in the market continues to grow despite reduced activity.

AVAILABLE: ± 36,000 SF Lot Land

BUILDING SIZE: ±18,000SF

ASKING PRICE: $319 PSF ($5,742,000.00)

APN#: 6129-006-020 & 6129-006-021

ZONING: LA Unincorporated M2

• Free Standing Industrial Building

• Fenced/Paved Yard area

• No City Business Tax

• 3 Ground Level Doors/4 Bathrooms

• Solar Lighting

• Bonus Unfinished Mezzanine

• Close to 110, 405, 91 and 105 Freeways

• In Q3 2024, San Gabriel Valley's industrial market remained robust with a 6.3% vacancy rate.
• Rental rates softened slightly, now at $17.76 per square foot (PSF), NNN annually, indicating a balanced supply-demand dynamic.
• The construction pipeline remains active, with 545,702 square feet of new industrial space under development.
• The City of Industry, a dominant player in the area, accounts for 72% of SGV’s industrial space, focusing on modern Class A warehouse and distribution centers.
• As market conditions shift, tenants and developers must stay agile, seizing opportunities and addressing challenges in this thriving industrial landscape. Adaptability will be essential for maintaining a competitive edge.

• Demand for industrial space weakened countywide in Q3, with an increase in sublet space.
• Vacancy rates are the highest since 2013 but still 200 basis points below the national average.
• The decline in net absorption is the largest year-to-date drop in 15 years.
• Average rents fell for the seventh consecutive quarter.
• Countywide negative net absorption in Q3 totaled 1.3 million SF, bringing the annual total to 4.1 million SF, the highest since the 2008 financial crisis.
• The average triple-net rental rate dropped to $1.59 per SF, down from the $1.71 peak at the end of 2023.
• Q3's 5% vacancy rate is an increase from 2% in Q1 2023.

In Q3 2024, the South Bay submarket saw a continued increase in vacant space, with the vacancy rate rising to 4.4%, up 20 basis points from Q2 and 50 basis points year-over-year. Tenants are becoming more selective, taking advantage of longer decision-making periods. Despite a 7.8% year-over-year decline in average asking rents, rents remained somewhat resilient due to concessions from landlords.

Leasing activity included 1.37 million square feet of new deals, though it was below the 10-year average. Net absorption was positive for the first time in a year, at +669,007 square feet. Construction continues with 1.5 million square feet in progress, which could impact vacancy rates if demand doesn't catch up.

Sales activity increased from Q2 but remained significantly lower than in 2023. Sales volume reached $71.9 million, and average prices per square foot dropped 22.5% year-over-year to $258.92.

AVAILABLE: ± 19,937 SF Lot

LEASE RATE: $0.30 / SF gross ($5,981.10 /Mo)

APN#: 8335-003-055

TERM: 3-5 Years

ZONING: IX1

• Fenced and Paved Yard

• Gated Entrance

• Light Industrial Uses

• Close to 10, 71 and 60 Freeways

AVAILABLE: ±27,750 SF Bldg on ±77,145 SF Lot

APN#: 7102-020-001

TERM: 3-5 Years

ZONING: M2

• Large Fenced and Paved Gated Yard

• Two (2) Dock High Loading Doors

• 14’-17’ Clear Height

• Free Standing Building

• High Visibility

• Close to 91 & 710 Freeways

GDP Growth: Q2 2024

• U.S. GDP grew at a 2.8% annual rate in Q2, up from 1.4% in Q1.
• Growth driven by increased consumer spending, business investment, and inventory growth.
• Consumer spending rose by about 2%, especially in health care, housing, recreation, and durable goods.
• Business investment increased, particularly in equipment and intellectual property.
• Inventory growth was notable in wholesale and retail trade, offset by declines in mining, utilities, and construction.
• Gross domestic purchases prices increased by 2.3%, down from 3.1% in Q1.
• Excluding food and energy, prices increased by 2.5%, down from 3.3% in Q1.
• Personal consumption expenditures price index increased by 2.6%, compared to 3.4% in Q1.
• Current-dollar personal income increased by $237.6 billion, down from $396.8 billion in Q1.
• Real disposable personal income growth slowed, and the personal saving rate decreased to 3.5%.

Employment: Q2 2024

• 206,000 jobs added in June, with a slight rise in the unemployment rate to 4.1%.
• Labor force participation rate increased to 62.6%, driven by prime-age workers.
• Wage growth slowed, with average hourly earnings rising 0.3% from May and 3.9% year-over-year.
• Job growth mainly in government and healthcare sectors.
• Private sector payrolls slowed, with gains in construction offset by declines in manufacturing.
• Job openings rose to 8.14 million in May, but a cooling trend is expected.

Monetary Policy: Q2 2024

• Federal Reserve left the overnight federal funds rate unchanged.
• Potential for at least one interest rate cut in 2024 remains.
• Disinflation resumed, with CPI inflation falling to 3.3% in May.
• FOMC held rates steady, awaiting further evidence of returning inflation to the 2% target.
• Financial markets expect a 0.25% rate reduction in September.
• Labor market showed better balance between supply and demand, with nominal wage increases trending down.

Global Economy: Q2 2024

• IMF forecasted global growth at 3.2% for 2024 and 3.3% for 2025.
• U.S. growth revised to 2.6% for 2024, slowing to 1.9% in 2025.
• Euro area expected to see modest growth driven by services and net exports.
• Japan's growth outlook revised downward due to supply disruptions and weak investment.
• Stronger activity in emerging markets, especially China (5% growth forecast for 2024) and India (7%).
• Latin America faced downward revisions for Brazil and Mexico due to natural disasters and moderating demand.
• Middle East and Central Asia impacted by oil production cuts and regional conflicts, with notable downward revisions for Saudi Arabia and Sudan.

• Development pipeline down 57% year-over-year
• Vacancy rates up 48%
• Lease rates adjusted by 28%
• Tenant activity has resumed in the Inland Empire West industrial market
• Historic levels of positive net absorption in the submarket
• Multiple 1-million-square-foot lease transactions executed by credit tenants
• Nearly 5 million square feet of move-ins from big-box deliveries with prior year leases
• Inland Empire continues to attract institutional capital
• Class A 835,000 square foot building sold for nearly $200 million

• Leasing Activity: 2.3 million square feet (MSF) of industrial space leased this quarter, up by 1.03 MSF from the previous quarter.
• Vacant-Availability Rate: Dropped by 0.4% from last quarter to 4.2%, but still 2.8% higher than last year.
• Market Trends: Increase in vacant-available space due to tenants returning unused space since 2023.
• Asking Lease Rates: Declined to $1.71 (direct) and $1.68 (overall) per square foot (PSF), though still 40%+ higher over the last five years. Class A spaces aim for $2.00+ PSF.
• Tenant Behavior: Tenants are more selective and pushing for rental concessions, with landlords becoming more negotiable.
• Net Absorption: Positive for sublet space (525,417 square feet) but overall net absorption negative at -539,467 square feet.
• Sales Volume: $51 million across 9 transactions in the South Bay, with average building prices at $288.61 PSF and land values at $143.79 PSF.
• Capitalization Rates: Increasing due to higher capital costs, forcing sellers to adjust prices.
• Interest Rates: Around 6.5% for fixed, 25-year owner-occupier loans.
• Insurance Challenges: Rising premiums and providers exiting the California market.
• Property Values: Some industrial areas affected by homelessness and vagrancy, impacting property and rental values.