Real Estate Newsletter Summer 2019
There are many new and exciting retail developments coming to the Inland Empire! Here is a summary of just a few of these projects. Contact me if you would like to receive a detailed newsletter for each specific city that has more information on what is being built or coming soon.
Topgolf is coming to Ontario!
The global sports entertainment phenomenon will be opening its second location in Southern California! Topgolf will be located on the southeast corner of N Archibald Ave and Fourth St. Guests score points by hitting golf balls at giant dartboard-like targets and can indulge in a great selection of food and drinks.
The Preserve at Chino is a master planned community being developed by Lewis Community Developers. When completed, the area will include a retail shopping center on Pine Ave. & Main Street with a grocery store and three drive-thrus. The southwest corner of the project will also include several three-story mixed-use buildings with retail on the first floor and residential units on the second and third floors.
An Ontario shopping center including a Costco Business Center has been approved at the southeast corner of Haven Ave. and the I-10 freeway. The 150k SF Costco Business Center will look almost identical to a traditional Costco, but will be a little more orderly to create a more efficient shopping experience for small-business owners.
Foothill Plaza in Corona is under construction at the northwest corner of I-15 and Foothill Parkway. Tenants are expected to open in mid to late 2019 and will include Circle K, Starbucks, Habit Burger, and Pizza Hut Sports Bar. A 20,000 square foot multi-tenant retail building is also being built which will include a nail spa, Total Care Walk-in clinic, Cryotherapy, Deli Delicious, and Foothill Donuts.
Inland Empire Retail Real Estate Trends
As the Inland Empire’s economic expansion continues, so does the local commercial real estate market. Demand for retail space has remained stable over the last year in the Inland Empire. Additionally, 271,000 square feet of new retail space came online over the last year. Strong demand drove the average asking rent to an annual rate of $23.12 per square foot in the first quarter of 2019, a 1.4% increase over the first quarter of 2018.
According to CoStar, locally based investors make the most acquisitions in the market. The market price has grown by roughly 4% per year for the last four years, compared to less than 2% growth for the national index. Average retail cap rates for the Inland Empire are about 6.3%, as compared to 7.1% for the retail market nationwide.
171 East Holt Avenue, Pomona, CA
This property featured newly renewed 5-year leases with Little Caesars, Fred Loya Insurance, and Culichi Roll. The challenge in selling this property was the fact that there was one unit that had been vacant for several years, and the property is located in a rough neighborhood in Pomona. I secured a buyer who paid cash for the property and closed in 30 days.
Sold Price: $2,100,000
Chino Hills Plaza – 14660 Pipeline Ave, Chino, CA
This property is in a prime location with convenient access from the CA-71 freeway in the prestigious Chino Valley. It features long term tenants, with over half of the tenants having been there for over ten years. This investment is inflation-resistant, with annual rent increases from all tenants except one, as well as Internet resistance, since most tenants in the center are service based businesses.
Price: $10,700,000 – Cap Rate: 6.00% on 14% vacancy
I specialize in representing buyers and sellers of retail investment properties, focusing primarily on the Western Inland Empire, encompassing the cities of Corona, Norco, Eastvale, Ontario, Chino, Chino Hills, Montclair, Pomona, and Fontana. Prior to commercial real estate brokerage, I worked as a residential real estate investor, flipping houses in Orange County.
I grew up in New Jersey, and have worked for corporations such as Nestle PowerBar, Prudential, and Computer Sciences Corporation. I have a degree in Biomedical Engineering from Johns Hopkins University and an MBA from Duke University.