Blog

We are excited to announce the successful sale of Suite 18-C at 10680 Silicon Avenue in Montclair, CA – a pristine, brand-new industrial condominium totaling ±3,444 SF.

Property Highlights:

• Newly constructed with modern finishes
• Impressive high warehouse clearance
• M1 zoning for flexible industrial uses
• Located in a highly desirable business park setting
• Prime Inland Empire West location with excellent access to the 10, 71, and 60 Freeways

This sale underscores the continued strong demand for high-quality, new-construction industrial space in one of Southern California’s most strategic logistics corridors.

Congratulations to everyone involved in the transaction!

Interested in owning or leasing similar industrial condos in the Inland Empire? Contact Ron Mgrublian, MBA at 562.354.2537 or rmgrublian@leelalb.com for current opportunities.

• Demand for industrial space declined for the tenth consecutive quarter in Q2 2025.
• Vacancy rate increased to 6.1%, up from a record low of 1.8% in late 2022.
• Higher vacancy rates have led to improved market conditions for tenants, with rental rates dropping over 10% from their recent peak.
• Reduced demand is primarily driven by concerns over tariff impacts, contributing to decreased cargo volumes at the Los Angeles port complex.
• Year-over-year container traffic in May 2025 fell by 5% at the Port of Los Angeles and by 8.2% at the Port of Long Beach.
• Rising vacancies are fostering a more balanced industrial market.
• The overall vacancy rate reached 6.1% at the end of June 2025, the highest since 2012.

South Bay Submarket Q2 2025 Overview Summary

• Vacancy/Availability: Total vacancy hit 6.4%, the highest since early 2023, with a 70-basis-point quarterly rise; available space reached 19.4 million square feet, up 2.5 million SF since Q4 2024, driven by returning leased properties and slow lease-ups; sublet vacancy rose to 1.0%, hinting at tenant downsizing; absorbing 4.8 million SF is needed to reach a 4% vacancy rate, excluding new deliveries.
• Rental Rates: Asking rents softened to $1.54 NNN per square foot from $1.61 in Q1 and a $1.69 peak in Q2 2024, marking two consecutive quarterly declines since the pandemic recovery; direct rents dropped more than sublet rents, reflecting landlord pressure from rising vacancies and slow leasing; despite high historical levels, tenants are gaining negotiation leverage.
• Construction: Only one building (504,000 SF) was delivered, with the pipeline shrinking to 742,000 SF, down 60% from 1.9 million SF a year ago, due to caution over vacancies, slow leasing, and softening rents; graded sites are on standby awaiting tenants or better conditions; no preleased projects suggest rising vacancy risks if leasing doesn’t improve.
• Leasing Activity/Absorption: Negative net absorption of -1.15 million SF marked a downturn from 544,000 SF last quarter, the third negative quarter in four, indicating tenant contraction; leasing activity fell to 1.12 million SF leased and 84 deals, below the 105-deal historical average, reflecting occupier caution, especially for larger spaces.
• Sales Activity/Investment Trends: Sales totaled 19 transactions at $93.5 million, up from 16 in Q1 but far below $375 million in Q4 2024; the average price per square foot dropped to $211.83, the lowest in over a year, as buyers adjust to vacancies and rents; cautious investor sentiment persists due to delayed Fed rate cuts and tariff uncertainty, though strong fundamentals attract future capital.

The South Bay industrial market faces challenges with rising vacancies, softening rents, and reduced activity, tempered by potential for recovery as market conditions stabilize.

Midcounties, Central, Inland Empire Submarkets also included in report

AVAILABLE: ±25,660 SF of Land

ASKING RATE: $0.33 / SF Gross

ZONING: I2

TERM: 3-5 Years

• Block Wall

• Paved Yard

• Power and Water Available

• Office Trailer

• Close to 60, 71 and 10 Freeways

AVAILABLE: ±27,896 SF(±0.64 Acres) of Land

ASKING RATE: $7,532 ($0.27 PSF Gross) Per Month

• Short Term Lease

• Truck Parking Possible

• Fenced Yard with Aggregate

• Water/Power Possible

• Close to 10 and 210 Freeways

AVAILABLE: ±27,750 SF Bldg on ±77,145 SF Lot

$0.16 OPEX

APN#: 7102-020-001

ZONING: M2

• Owner Motivated - Submit Your Offer Now!

• Large Fenced and Paved Gated Yard

• Abundant Parking – 56 spaces

• Two (2) Dock High Loading Doors

• Free Standing Building

• High Visibility

• Close to 91 & 710 Freeways

Key Points:

• Industrial space demand in Orange County declined for the ninth straight quarter in Q1.
• Asking rents dropped nearly 10% during the quarter.
• Net absorption was negative at 626,940 square feet in Q1.
• Previous absorption declines: 5.2 million SF in 2024 and 2.6 million SF in 2023.
• Countywide vacancy rate increased from 1.8% (record low) to 5.8% over two years.
• Business caution, fueled by last year's issues and election-related tariff concerns, continues to limit growth.

Two brand-new, high-image industrial condo units are now available in one of the Inland Empire West’s most desirable business parks.

Available Units:

• Unit 11-Q: ±2,400 SF – Offered at $395/SF
• Unit 20-A: ±3,699 SF – Offered at $400/SF

Key Features:

• Brand-new 2025 construction
• Impressive high warehouse clear height
• Ground-level loading doors
• Modern industrial entry with built-out office space & restroom
• Fire sprinklers
• M1 zoning (Montclair)
• Excellent access to the 10, 60, and 71 freeways

Located in a premier business park setting with professional landscaping and ample parking, these units are ideal for owners/users seeking quality, move-in-ready space in a high-demand submarket.

A full 3D virtual tour is available, showcasing the clean, bright interiors and efficient layouts.

For more information or to schedule a tour, contact:

Ron Mgrublian, MBA 

Principal – Lee & Associates 

562.354.2537 | rmgrublian@leelalb.com

Don’t miss this rare opportunity to own new-construction industrial space in the heart of Inland Empire West!

10680 SILICON AVE MONTCLAIR, CA, 11-Q

Industrial Condo

Size ±3,699

PROPERTY FEATURES

• Brand New Construction

• High Clear

• Highly Desirable Business Park Setting

• Great Inland Empire West Location

• Close to 10, 71 & 60 Freeways

South Bay Submarket Q1 2025 Overview Summary

• Vacancy/Availability: The vacancy rate rose to 5.6%, up 70 basis points year-over-year, with Carson (7.9%), Compton (9.7%), and Rancho Dominguez (10.8%) seeing the largest increases. High-end properties now take 12.2 months to lease, shifting leverage to tenants. Landlords are offering more concessions, with 10.28 million square feet of vacant/available space. The market needs to absorb 5.1 million square feet to return to a 3% vacancy rate.
• Rental Rates: Average asking rents fell to $1.61 NNN, down 1.4% quarter-over-quarter and 8.0% year-over-year. After a 118% rent surge from Q2 2020 to Q2 2023, increased vacancy (10 MSF added) is driving further declines until leasing rebounds.
• Construction: Construction totals 1.4 MSF, with 360,466 SF delivered in Q1. Seven buildings are under construction, but new starts are limited, and no projects are preleased. Developers are pausing, waiting for tenants or better market conditions, which may increase vacancy if leasing doesn’t improve.
• Leasing Activity/Absorption: Net absorption was positive at 561,683 SF, but cumulative absorption since Q1 2023 is negative at -4.7 million SF. Leasing volume hit 1.3 million SF across 103 transactions, below the historical 2.5 million SF quarterly average. Buildings now take six months to lease.
• Sales Activity/Investment Trends: Investor caution persists due to high interest rates and economic uncertainty, widening the bid-ask spread. Despite lower deal volume, the South Bay attracts capital due to high rents and limited land. The region is poised for an investment rebound as borrowing costs ease.

The South Bay market faces challenges with rising vacancy and declining rents but retains strong fundamentals for future growth.

Additional Reports for Midcounties, Central and Inland Empire Included.

Available : ±1,800 – ±6,600 

Lot Size: ±40,847 SF of Land

Rate: $1.65 gross

Term: 3-5 years

Zoning: C-P (PCD)

APN: 8447-031-038

Park-like setting: The building is situated in aserene environment with beautiful views of the park.

Ample parking: Large lot with ±28 Parking Spaces

Next to 10 Freeway with close access to 57, 71, 210 & 60 Freeways

AVAILABLE: ±25,660 SF of Land

ZONING: I2

TERM: 3-5 Years

• Block Wall

• Paved Yard

• Power and Water Available

• Office Trailer

• Close to 60, 71 and 10 Freeways