A national construction and civil engineering company has leased an approximately 5.18-acre industrial outdoor storage (IOS) site in the Inland Empire city of Rialto, California, in a deal brokered by DAUM Commercial Real Estate Service.

This particular asset offers functionality that is increasingly rare to find in Southern California's infill industrial market, according to DAUM Executive Vice President and Principal Gus.

Its proximity to Interstate 10, Interstate 215 and other key regional distribution corridors, combined with flexible outdoor storage zoning and significant capacity, positions the property exceptionally well for transportation, logistics and industrial users serving the Ports and the broader region.

"The combination of scale, infrastructure, and connectivity made this a compelling long-term opportunity for the new occupant," Andros told GlobeSt.

According to a Q1 2026 report from DAUM, overall industrial vacancy in the Inland Empire West continued to decline to 7.88%. The overall net absorption of 544,744 square feet indicates improving fundamentals in the region.

San Francisco-based Stockbridge Capital Group owns the site. The lease term is 10 years, and the total consideration for the property at 805 West Rialto Avenue exceeds $11.1 million.

The tenant provides safety equipment to global businesses.

Along with Andros, Jerry Gillman of Sojka-Nikkel Commercial Realty represented the tenant in the transaction. Juan Gutierrez, Shy Assar, Ian Ozimec and Braden Sprenger of Voit Real Estate Services represented the landlord.

Late 2023 through early 2025 marked a particularly volatile period for industrial real estate, with many investors and users hesitant to make moves amid elevated borrowing costs and economic uncertainty, but the market is beginning to regain momentum, Andros said.

The Federal Reserve has held rates steady between 3.50% to 3.75% through early 2026 after peaking above 5% in 2023, creating a more stable and favorable environment for occupiers and investors alike.

At the same time, the Southern California Ports of Los Angeles and Long Beach continue to post historically strong cargo volumes, with Los Angeles handling more than 7.8 million TEUs through the first nine months of 2025, up roughly 3% year-over-year.

While there has been some expected softening in early 2026 from last year's record highs, Long Beach was still the country's busiest seaport in Q1. Elevated tariffs, including a 10% baseline levy and additional surcharges on certain imported goods, have driven federal customs revenue significantly higher, generating nearly $195 billion in fiscal year 2025. That's more than double prior-year levels and comes while gradually increasing prices for imported and other tradable goods.

"Overall, dynamics are influencing restored confidence across core logistics markets such as Inland Empire West," Andros said.

The site offers approximately 225,640 square feet of space zoned for general manufacturing. It contains three buildings with 18-foot clear heights and ground-level doors.

The amenities include a large truck scale, a truck wash station and exterior pole lighting. Recent improvements to the asset are overhead and man doors, asphalt repairs, upgraded electrical, roofing, replacement of exterior panels, new carpet, interior and exterior paint, refreshed landscaping and a new chain-link fence surrounding the property.

NOT FOR REPRINT

© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.