Cross Dock Industrial with Outdoor Storage

The Mojave River Valley encompasses the cities of Victorville, Apple Valley, and Barstow, with most industrial properties located along I-15. The submarket had been mostly left out of the industrial boom experienced in some of the more centralized Inland Empire submarkets until recently. Increased rents in Inland Empire West submarkets have pushed tenants to more distant locations. Developers are targeting the area as land scarcity and high pricing abound in parts of the Inland Empire closer to Los Angeles. Vacancies improved to 2.6% after hovering between 6% and 8% from 2015 to 2019. Rents gains are accelerating and grew by 14.6% in just the past 12 months. In the last five years, rent gains have averaged 10.9%. Pricing has closely mirrored rent growth with sales volume totaling $141 million in 2022. With proximity to more than 20 million residents in Southern California and the ports of Los Angeles and Long Beach, the broader Inland Empire has grown to become one of the nation's largest industrial markets. Persistent demand from logistics and warehousing firms has kept vacancies compressed relative to the nation, but the vacancy rate has ticked up over the past four quarters as international trade flows and domestic consumer spending on goods have slowed. The presence of high-credit tenants, such as Amazon, Walmart, Target, and General Pacific, attracts institutional investors from across the world. Transaction activity has slowed since 22Q4 when looking at the number of closed deals, but sales volume is elevated because of several outsized trades. For example, Prologis' $23 billion acquisition of Duke Realty in 22Q4 included 45 properties in the Inland Empire valued at approximately $3.2 billion. In January 2023, both Rexford Industrial and Brookfield Asset Management, respectively, acquired properties valued at more than $300 million. Year-to-date, sales volume totals $1.1 billion, following a record year in 2022, when sales volume totaled $10.0 billion.Graystone Capital Advisors is pleased to exclusively present for sale or lease 16585 Beaver Rd, in Adelanto, CA. The property consists of one 18,270 SF building (4,778 SF two-story office buildout –13,492 SF warehouse area) and a freestanding 2,400 SF warehouse. The two buildings that total 20,670 SF sit on an expansive 5.413 AC paved lot. The large lot features a fully fenced perimeter with two gated entrances/exits that allow convenient truck access. Adelanto and the greater IE-North/Mojave River Valley is one of the state’s fastest-growing distribution and logistics hubs with +10M SF of proposed/in-progress development along the US-395 corridor. 16585 Beaver Rd also represents an excellent opportunity for traditional industrial users & investors. Having such low lot coverage, the property is well positioned for potential cross-docking, industrial outdoor storage uses, or further development in the future. The fenced perimeter allows for secure storage, the large paved lot provides ample room for trucks to maneuver, and the primary warehouse offers three dock-high loading doors, with opportunities to add 18+ additional dock-high doors. The property is adjacent to the Southern California Logistics Airport and sits just off US-395, providing convenient access to the CA-18, I-15, and I-40 Freeways.