Blog #pomona

• 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.

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

• In Q2 2024, San Gabriel Valley's industrial market showed resilience with a 5.9% vacancy rate.
• Rental rates now stand at $18.72 PSF, NNN annually.
• The construction sector is active, with 706,000 SF under development.
• The City of Industry represents 72% of SGV's industrial base and is a key player in new Class A warehouse and distribution space projects.
• Tenants and developers must stay vigilant and adapt to market fluctuations to capitalize on opportunities in the evolving SGV industrial landscape.

AVAILABLE: ±43,560 SF to±142,879 SF Land

APN#: 8326-009-013, 014, 016, 017, 021

ZONING: M1 & Corridors Specific Plan

• Multiple Sizes Possible

• Partially Paved

• Water & Trash Available

• Close to 10, 71 and 60 Freeways

During the fourth quarter of 2023, the San Gabriel Valley Industrial Submarket of Los Angeles experienced a continuation of the trend where available space increased once again, marking a significant factor in the local industrial real estate landscape. This rise in available space suggests potential shifts in market dynamics, such as increased supply or adjustments in tenant demand, influencing the overall vacancy rates in the submarket. 

The submarket faced a minor setback in terms of average rents, which decreased by $0.07 to $1.56 NNN (Triple Net Lease). This decrease may be attributed to the delicate balance between supply and demand, tenant negotiations, and broader economic factors that impact the pricing dynamics of industrial properties in the San Gabriel Valley. 

Within the Pomona Industrial Market, warehouse buildings in the fourth quarter of 2023 had an average sale price of $308.76 per square foot (PSF). This figure provides valuable insights into the local market's pricing dynamics, reflecting the perceived value of industrial properties in Pomona during that specific quarter. 

In the neighboring City of Industry, the average sale price per square foot for warehouse buildings stood higher at $351.68. This higher price point suggests that the City of Industry maintained a premium position within the San Gabriel Valley, potentially due to factors such as strategic location, specialized facilities, or a higher level of demand in that specific submarket. 

Looking at the San Gabriel Valley Industrial Market as a whole, the average sale price settled at $304.52 PSF during Q4 of 2023. This comprehensive figure encompasses the performance of various submarkets within the San Gabriel Valley, highlighting the overall pricing trend for industrial properties across the region. 

In summary, the fourth quarter of 2023 witnessed an increase in available space in the San Gabriel Valley Industrial Submarket, coupled with a slight decrease in average rents. The variations in average sale prices across specific markets, such as Pomona and the City of Industry, add complexity to the overall real estate landscape. Stakeholders and investors may find value in analyzing these trends to make informed decisions in response to the evolving dynamics of the San Gabriel Valley's industrial real estate market.

The industrial sector in the San Gabriel Valley continues to exhibit resilience and robustness, even in the face of a minor uptick in the vacancy rate, which now stands at 3.3%. This small increase in vacant industrial spaces has not had a significant adverse impact on the market. Rental prices have experienced only a slight dip since the previous quarter, currently averaging at an annual rate of $18.96 per square foot on a triple-net lease basis. 

Despite these minor fluctuations, construction activity in the San Gabriel Valley remains steady and thriving. A substantial 5.3 million square feet of new industrial developments are currently underway, illustrating the enduring demand for industrial properties in the region. 

However, it is essential to note that a moratorium in Pomona, California, affecting warehouses, trucking facilities, and other industrial-related uses, is poised to expire by the close of 2023. This pending expiration of the moratorium introduces an element of potential opportunity into the local industrial landscape. Both tenants and developers should keep a watchful eye on market dynamics and remain flexible in their strategies, ready to pivot to seize emerging opportunities in this ever-evolving industrial market in the San Gabriel Valley. 

In conclusion, the San Gabriel Valley's industrial sector is in a state of transition, with various factors in play, from the rise in vacancy rates to the imminent expiration of the Pomona moratorium. Adapting to these changes and staying well-informed about market shifts will be crucial for those involved in the industrial real estate market in this dynamic and resilient region.

• Great Visibility

• Large Fenced and Paved Yard

• High Traffic Area

• City Gateway Segment

• Bonus Storage Downstairs (not included in SF)

AVAILABLE: 1.22 AC - (53,143 SF) Industrial Land

ZONING: Urban Neighborhood

• Truck Parking or Ourdoor Storage possible

• Cannabis Overlay Zone

• Excellent Access To The 71, 57 And 10 Freeways

±4.37 Acres of Land

Mixture of Zoning by Parcel (Majority of IX1)

MidTown Segment (2 Parcels) and SB 330 (1 Parcel)

70 Units Per Acre (306 Total) Low Income Housing Possible

The unique ±2.55-acre site in Unincorporated San Bernardino County between Pomona, Chino and Ontario, CA leased to a local truck body and van equipment company.

According to CoStar there is little industrial land available in the submarket, leading to less activity in this area than the larger markets to the East.

Ron Mgrublian is a Commercial Real Estate Broker focusing on Industrial Real Estate and Warehouse Properties with Lee & Associates in the Southern California area.

The San Gabriel Valley Industrial Market remains robust.