TA Realty has acquired two Inland Empire warehouses from JCS Properties for a total of $133.5 million. Stream Realty represented the buyer in the transaction.
Boston-based TA paid $92 million for a $254,000 warehouse in City of Industry that is fully leased to Classic Beverage Company, a distributor of domestic and imported beers.
The industrial facility, located at 120 Puente Avenue, includes a refrigerated space in the warehouse and an office on the third floor that includes a training room, kitchen and bar.
TA Realty also acquired for $41.5 million a 140,000 square foot warehouse located at 451 Cota Street in Corona, at the intersection of Main Street and the Riverside Freeway. The facility includes 11 dock doors, three drive-in bays and 160 parking spaces. The two-tenant building is 42% occupied.
According to a release from Stream Realty, the West Inland Empire industrial market comprises more than 334 million leasable square feet of industrial space. The market saw 6 million leasable square feet of positive gross absorption in the second quarter of 2022. Vacancy remains at an all-time low of 0.38%.
The Inland Empire is the tightest industrial market in the United States year-to-date, essentially filled to capacity – vacancies were less than 0.4%, according to JLL’s Q2 market report.
Year-to-date net absorption in the Inland Empire was nearly 7.3 million square feet at the end of the second quarter. Pre-leased space was the main driver of net uptake in the second quarter, as existing availabilities remain extremely tight.
The development pipeline jumped an additional 9.2 million SF in the second quarter of 2022, to a record 39.2 million SF, JLL reported. Demand rates rose another 13.7% quarter-over-quarter as vacancy remains at an all-time high
Last month, two more cities joined a growing list of Southern California municipalities that have said enough about the largest warehouse sprawl in North America, estimated at 2.3 billion square feet.
By unanimous vote, Norco City Council declared a 45-day moratorium on the construction of new industrial real estate projects involving warehouses. Their vote follows a decision by Pomona officials to extend their warehouse moratorium for another 10.5 months.
These are just the latest in a growing NIMBY backlash among Inland Empire cities trying to stop the warehouse sprawl that has filled all but a handful of infill sites in the western half of the two-county region. , which encompasses the area between LA city limits and the Arizona border – extending to the eastern half and northward.