Buying Industrial Property in Riverside, CA: What You Need to Know

Industrial Property Market Overview in Riverside, CA

If you’re looking for industrial property for sale Riverside CA, you’ve come to the right place. Riverside’s industrial property market is experiencing significant growth and offers plentiful opportunities for investors and business owners alike. Here’s a quick snapshot:

Key Points:

Rapid Growth: Riverside’s industrial sector is expanding, driven by its strategic location and robust economic activities.
High Demand: Industrial spaces, including warehouses and distribution centers, are in high demand due to the city’s role as a logistics hub.
Diverse Offerings: The market includes a variety of properties like industrial lots, warehouses, and mixed-use developments.

Riverside, CA sits in the heart of the Inland Empire, making it a prime location for industrial businesses. This region benefits from excellent accessibility to major transportation routes, such as the I-215 and CA-91 freeways. As a result, Riverside is a central point for logistics and manufacturing industries.

My name is Joe Stance, and for seventeen years, I have worked in the commercial real estate industry in Riverside. I’ve guided hundreds through buying and selling industrial property for sale Riverside CA. Now, let me help you steer this vibrant market successfully.

Why Invest in Industrial Property in Riverside, CA

Logistics Center

Riverside, CA, is a key logistics center within the Inland Empire, a region known for its extensive transportation network and robust industrial base. The city’s strategic location near major freeways like the I-215 and CA-91 provides businesses with excellent access to both local and national markets. This accessibility is crucial for companies involved in manufacturing, warehousing, and distribution.

For instance, the area along the Riverside Freeway (CA-91) is particularly attractive for industrial and flex spaces due to its proximity to larger markets like Los Angeles and San Bernardino. Investors and businesses looking to capitalize on Riverside’s growth should keep an eye on this corridor for high visibility and easy transportation access.

Economic Growth

Riverside is experiencing rapid economic growth, driven by a diversified economy that includes sectors such as manufacturing, retail, and logistics. This economic expansion fuels the demand for industrial properties, making it an ideal time to invest. According to recent trends, the demand for industrial spaces has been increasing, reflecting the city’s expanding economic activities.

A case in point is the booming development in the Inland Empire, where over 19 million square feet of industrial real estate is currently under construction. This growth is expected to draw more people to the area, further boosting the demand for industrial properties.

Strategic Location

Riverside’s strategic location within the Inland Empire makes it a prime choice for industrial investments. The city’s central position offers easy access to key markets in Southern California, including Los Angeles and San Bernardino. This makes it an ideal hub for logistics and manufacturing operations.

The I-215 freeway, a major north/south thoroughfare, runs from San Bernardino to Murrieta and sees daily traffic counts exceeding 155,000. Properties located along this route benefit from excellent accessibility and visibility, enhancing their investment potential.

Inland Empire

The Inland Empire, which includes Riverside, is one of the fastest-growing regions in California. With a projected population growth that could add over 1.5 million residents in the next 45 years, the demand for industrial properties is set to rise. This growth, coupled with a low unemployment rate of 4.1%, makes the region a fertile ground for industrial investments.

A recent example is the sale of a two-tenant retail property in Riverside for $2.3 million, reflecting a 4.52% cap rate. This property, featuring a Jack in the Box and a Verizon cell tower, highlights the region’s attractiveness to investors. The Inland Empire is not just a logistics hub but also a booming market for various types of commercial real estate.

Investing in industrial property for sale Riverside CA offers numerous benefits, from strategic location and economic growth to high demand and excellent accessibility. Whether you’re looking to purchase a warehouse or a logistics center, Riverside provides a dynamic and promising market for industrial real estate investments.

Types of Industrial Properties Available

When considering industrial property for sale in Riverside, CA, understand the different types of properties available. Riverside offers a variety of industrial spaces, each suited to different business needs. Here’s a breakdown of the main types:

Warehouses

Warehouses are the backbone of Riverside’s industrial sector. These properties are designed for storage and distribution, making them ideal for businesses that need large spaces to store goods. Warehouses in Riverside benefit from the city’s excellent transportation links, including proximity to major freeways like the I-215.

For example, the area along the Riverside Freeway (CA-91) is particularly attractive for warehousing due to its easy access to larger markets like Los Angeles and San Bernardino.

Logistics Centers

Logistics centers are specialized properties designed to facilitate the movement of goods. These centers often include advanced features like automated sorting systems and expansive loading docks. Riverside’s strategic location within the Inland Empire makes it a prime spot for logistics centers. The region’s robust transportation network ensures that goods can be moved efficiently to and from major markets.

Truck Yards

Truck yards are essential for companies involved in transportation and logistics. These properties provide ample space for parking and maintaining large fleets of trucks. Riverside’s proximity to major freeways and its central location in Southern California make it an ideal spot for truck yards.

For instance, properties located along the I-215 freeway benefit from excellent accessibility and visibility, enhancing their appeal to logistics companies.

Small Industrial Properties

Small industrial properties are versatile spaces that can be used for various purposes, from light manufacturing to small-scale warehousing. These properties are often more affordable and can be a great starting point for smaller businesses or startups. Riverside offers a range of small industrial properties that cater to different business needs, ensuring that even smaller enterprises can find suitable spaces.

Used Industrial Properties

Buying used industrial properties can be a cost-effective option. These properties often come with existing infrastructure, which can save time and money on setup. Riverside has a variety of used industrial properties available, many of which are located in prime areas with excellent access to transportation networks.

A notable example is the recent sale of a two-tenant retail property in Riverside for $2.3 million. This property featured a Jack in the Box and a Verizon cell tower, highlighting the region’s attractiveness to investors. The Inland Empire is not just a logistics hub but also a booming market for various types of commercial real estate.

Investing in industrial property for sale in Riverside, CA offers numerous benefits, from strategic location and economic growth to high demand and excellent accessibility. Whether you’re looking to purchase a warehouse, a logistics center, or a small industrial property, Riverside provides a dynamic and promising market for industrial real estate investments.

Key Considerations When Buying Industrial Property

When buying industrial property for sale in Riverside, CA, several critical factors can significantly impact your investment. Let’s break down the key considerations:

Zoning Laws

Why It Matters: Zoning laws dictate what you can and cannot do with a property. Incorrect zoning can lead to legal issues and restrict your business operations.

What to Look For: Ensure the property is zoned for industrial use. Contact Riverside’s city planning department to verify the zoning regulations. Some properties are in mixed-use zones, which may offer more flexibility but come with specific restrictions.

Property Condition

Why It Matters: The condition of the property affects both immediate repair costs and long-term maintenance expenses. A well-maintained property can save you money and hassle.

What to Look For: Conduct a thorough inspection. Look for signs of wear and tear, structural issues, and outdated systems. For example, properties built in the 2000s, like the 2008 office building on 5,193 SF, typically require fewer repairs compared to older buildings from the 1950s or 1960s.

Accessibility

Why It Matters: Accessibility influences the ease of transportation for goods and services, impacting operational efficiency and costs.

What to Look For: Choose properties with easy access to major roads and highways. Riverside’s proximity to the I-215 and CA-91 freeways makes it a prime location. Properties like the industrial property at 3100 Jefferson St., which offers 150,000 SF for lease, benefit from excellent freeway access, making them ideal for logistics and warehousing.

Future Development Plans

Why It Matters: Upcoming developments can either improve property value or increase competition. Staying informed about future projects is crucial for long-term planning.

What to Look For: Monitor the City of Riverside’s development plans. Properties near future commercial complexes or housing developments can see significant value appreciation. For instance, the booming development in the Inland Empire, with over 19 million square feet of industrial real estate under construction, indicates a thriving market that can attract more businesses.

By considering these factors, you can make an informed decision when purchasing industrial property in Riverside, CA. This approach ensures that your investment aligns with both your immediate needs and long-term goals.

Top Locations for Industrial Property in Riverside, CA

When looking for industrial property for sale in Riverside, CA, focus on the top locations that offer the best opportunities. Here are some prime areas to consider:

Riverside County

Why It’s Hot: Riverside County is a key player in the Inland Empire, known for its robust industrial market. The area is strategically located with easy access to major highways like the I-215, CA-91, and Hwy 60. This makes it a logistics hub, ideal for warehousing and distribution centers.

Key Features:

Accessibility: Proximity to major transportation routes.
Growth: Significant ongoing and planned developments.
Diverse Options: From small industrial units to large-scale warehouses.

Inland Empire

Why It’s Hot: The Inland Empire, which includes Riverside County, is one of the fastest-growing industrial markets in the country. With over 19 million square feet of industrial real estate currently under construction, the area is booming.

Key Features:

High Demand: Strong demand for industrial spaces due to the rise of e-commerce.
Investment Potential: High return properties like vehicle parks and storage facilities are particularly lucrative.
Strategic Location: Excellent infrastructure and connectivity.

Fontana

Why It’s Hot: Fontana, located within the Inland Empire, is a prime spot for industrial investments. The area benefits from its proximity to the I-10 and I-15 freeways, making it a logistics powerhouse.

Key Features:

Logistics Hub: Ideal for distribution centers and manufacturing plants.
Development: Rapid industrial growth with new projects consistently emerging.
Accessibility: Easy access to major highways and transportation routes.

Boyle Ave

Why It’s Hot: Boyle Ave in Riverside is another excellent location for industrial properties. The area is known for its established industrial zones and proximity to key commercial areas.

Key Features:

Established Area: Well-known industrial zone with existing infrastructure.
Proximity: Close to downtown Riverside and major highways.
Flexibility: Offers a range of property sizes and types, from small warehouses to large industrial complexes.

By focusing on these top locations, you can find industrial property for sale in Riverside, CA that meets your investment goals. Each area offers unique advantages, whether it’s strategic location, high demand, or growth potential.

Steps to Buy Industrial Property in Riverside, CA

Buying industrial property for sale in Riverside, CA involves several crucial steps. Each step is important to ensure a smart and profitable investment. Here’s a simplified guide to help you steer the process:

Market Research

Start by conducting thorough market research. This involves:

Understanding Market Trends: Look at the demand for industrial spaces, price trends, and future growth projections in Riverside. Platforms like CoStar provide valuable insights.
Identifying Prime Locations: Focus on areas with high growth potential, such as Riverside County and the Inland Empire. These areas offer strategic advantages like proximity to major highways and robust infrastructure.

Property Inspection

Once you’ve identified potential properties, the next step is a detailed inspection:

Physical Condition: Inspect the property for any structural issues, necessary repairs, or renovations. This can prevent unexpected costs down the line.
Compliance: Ensure the property complies with local zoning laws and safety codes. Riverside has specific zones for industrial use, so it’s crucial to verify that the property meets these requirements.

Financing Options

Securing financing is a critical step in the purchase process. Some common financing options include:

Traditional Bank Loans: These offer competitive interest rates but require a strong credit history.
SBA Loans: Ideal for smaller businesses, these loans have specific eligibility criteria.
Commercial Bridge Loans: Short-term loans that can bridge the gap between immediate funding needs and long-term solutions. It’s advisable to consult a financial advisor to choose the best option for your situation.

Legal Considerations

Navigating the legal landscape is essential to avoid potential pitfalls:

Zoning Laws: Ensure the property is zoned for industrial use. Riverside has specific zoning laws that dictate what types of businesses can operate in certain areas.
Permits and Codes: Before making any modifications, obtain the necessary permits and ensure compliance with local safety codes. This includes fire safety, building codes, and environmental regulations.

Summary

By focusing on thorough market research, detailed property inspections, securing the right financing, and understanding legal considerations, you can successfully steer the process of buying industrial property for sale in Riverside, CA. This approach not only protects your investment but also sets the stage for potential high returns in this dynamic market.

Frequently Asked Questions about Industrial Property for Sale in Riverside, CA

What is the average price of industrial property in Riverside, CA?

The average price of industrial property in Riverside, CA can vary widely based on location, size, and condition. As of recent data, properties can range from $100 to $200 per square foot. For example, a property with a 5.70% cap rate indicates a potentially profitable investment.

However, prices can fluctuate based on market conditions and specific property features. It’s advisable to consult with a local expert like Stance Commercial Real Estate to get the most accurate and up-to-date information.

How do I find industrial property for sale by owner in Riverside, CA?

Finding industrial property for sale by owner can be a bit challenging but rewarding. Here are some strategies:

Online Platforms: Websites like LoopNet list numerous properties, including those for sale by owner.
Local Listings: Check local newspapers and real estate publications specific to Riverside.
Networking: Attend local business events and real estate meetups. Often, property owners prefer to sell directly to avoid agent fees.
Real Estate Advisors: Partnering with a local firm like Stance CRE can give you access to exclusive listings not available online.

What are the benefits of buying used industrial property?

Buying used industrial property in Riverside offers several advantages:

Cost Savings: Used properties are generally cheaper than new constructions, freeing up capital for other investments.
Immediate Availability: Unlike new builds, used properties are often ready for immediate occupancy, allowing you to start operations or leasing sooner.
Established Infrastructure: Older properties may already have essential infrastructure in place, reducing initial setup costs.
Potential for Value-Add: With some renovations or upgrades, used properties can significantly increase in value, providing a strong return on investment.

For instance, a recent sale of a two-tenant retail property in Riverside, including a Jack in the Box and a Verizon cell tower, was completed for $2.3 million at a 4.52% cap rate. This demonstrates the potential profitability of well-located, used properties.

How Stance CRE Can Help You

When it comes to industrial property for sale in Riverside, CA, partnering with a knowledgeable and dedicated real estate team can make all the difference. At Stance CRE, we specialize in providing local expertise and prioritizing service over profit. Our founders, Joe and Heidi Stance, along with our team, are deeply rooted in the Riverside community, giving us a unique advantage in understanding the local market dynamics.

Local Expertise

Our intimate knowledge of Riverside’s commercial real estate landscape allows us to offer insights that go beyond basic metrics. We know the streets, the buildings, and the history behind them. This helps us provide custom advice that aligns with your business goals. For example, we can identify which locations have the best foot traffic and how future developments might affect your investment.

Service Over Profit

At Stance, we believe in building long-term relationships with our clients. Our goal is to ensure that you get the best possible outcome for your property. Whether through meticulous property preparation, strategic pricing, or targeted marketing, we go the extra mile to make sure your property stands out. We handle the complexities of commercial transactions so you can focus on running your business.

From identifying the perfect property to negotiating contracts and managing post-sale logistics, we are with you every step of the way. Our commitment to transparency, communication, and integrity ensures a seamless experience from start to finish.

If you’re considering investing in industrial property in Riverside, let us guide you through the process. Our knowledge and expertise are your assets in making informed, strategic decisions that drive growth and success.

Find how we can help you capitalize on the opportunities in Riverside’s dynamic market. Visit our Riverside Commercial Real Estate Buying Guide to start your investment journey with a team that knows Riverside best.

In conclusion, choosing Stance Commercial Real Estate means choosing a partner who values local insight and delivers exceptional service. Let us help you in Riverside—a city that’s as rich in potential as it is in history.