REDLANDS, CA—Annual industrial rent growth topping 10% and continued tenant demand have spurred the $33.3-million sale of Redlands Business Center in Southern California's Inland Empire-East submarket. That is according to JLL, which represented seller, Bixby Land Co.
"The Inland Empire has such strong, broad tenant demand," says JLL's Bo Mills, managing director. "This keeps landlords in a fortunate position where—even as one lease is expiring—they can pull from a pipeline of users who are looking for best-in-class space and are willing to commit to increasingly longer-term deals."
Clarion Partners purchased the asset on behalf of a commingled fund. In 2015, the submarket achieved 20.1 million square feet of net industrial space absorption and year-over-year industrial rent growth of more than 10%. Active tenant requirements continue outpace new construction by as much as 10 million square feet, making the Inland Empire a national leader in tenant demand, says JLL.
According to JLL managing director, Mark Detmer, "Big box projects in the Inland Empire offer the same logistics benefits as LA and Orange counties, but at a comparatively lower cost. These factors alone have helped Redlands Business Center maintain a historical occupancy of 94% and continue to reassure owners with a very positive investment outlook."
Located at 2220 Almond Ave., Redlands Business Center totals 411,879 square feet, with 2,982 square feet of one-story office space. Project amenities include 30' clear height, a 201' secured truck court, ESFR sprinklers and offers ample automobile and trailer parking. The property has been institutionally owned and managed since its inception. It offers immediate access to the I-10, I-210 and I-215 Freeways, Ontario Airport and the nation's busiest port system.
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