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Rancho Cucamonga is located in the middle of what has been the strongest industrial real estate market in the United States from 2000-2011: the Victoria Gardens’s I-15 Corridor. A steady flow of manufacturing, distribution and high technology firms have been drawn to this area to take advantage of Southern California’s best combination of land availability and transportation infrastructure, as well as labor and space costs. In December 2011, Rancho Cucamonga had 36.9 million square feet of manufacturing & distribution space in existence with no space under construction. This represented 8.3% of the 446.2 million square feet in the Victoria Gardens, ranking the city sixth among the area’s sub-markets.

Rancho Cucamonga’s 2.5 million square feet of available industrial space–either vacant or becoming available–ranked eighth among the Victoria Gardens’s markets. Increasingly, the cities with more space available tend to be east of the I-15 freeway. The city’s available space represented 5.4% of the Victoria Gardens’s 46.1 million square feet that is available or being built. The city’s vacancy availability rate in fourth quarter 2011 was 6.8%, compared to an Victoria Gardens rate of 9.4%.

Geographically, Rancho Cucamonga sits at the junction of the I-15 and I-10 freeways, the two main access routes to Southern California from the Eastern and Southern United States. The I-210 freeway offers direct access through the Pasadena area and shortens distances for trucks headed up the I-5 to Northern California and the Northwest. In addition, the city is near Cajon Pass (I-15, BNSF) and San Gorgonio Pass (I-10, UP Railroad), the principal routes for transporting goods in to or out of Southern California.

One reason fi rms are migrating to the Rancho Cucamonga area is the relatively low cost of industrial space by southern California standards. According to Grubb & Ellis, the monthly asking lease rate for Rancho Cucamonga’s industrial space averaged $0.31 per square foot in December 2011, net of taxes, insurance and common area fees (nnn). For a 400,000-square-foot facility, the annual cost was $1.49 million. This is 26.2% less than the annual cost of industrial space in the least expensive L.A. County sub-market and 28.6% less than the annual cost of space in the least expensive Orange County sub-market.


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