Fontana 133K sf trade shows investor demand

Bridge Logistics Properties bought a 133,115-square-foot warehouse at 10740 Banana Ave. in Fontana in an off-market deal announced April 14. (connectcre.com) The building sits in Southwest Industrial Park in Inland Empire West, was completed in 2020, and is fully leased through 2028. Bridge Logistics Properties said the purchase price was below current replacement cost, the rough benchmark for what it would cost to build a similar facility today. (connectcre.com) Grant Moore, vice president of West Region investments at Bridge Logistics Properties, said the company targeted “a modern, well-located asset with in-place cash flow.” Eastdil Secured’s Marc Alfert and Clay Skistimas and Newmark’s Steve Sprenger brokered the sale. (connectcre.com) The sale landed as the Inland Empire industrial market is sending mixed signals in early 2026. Core vacancy reached 7.8% in the first quarter, while new leasing climbed to 13.6 million square feet, up 40.2% from the prior quarter, according to CBRE. (cbre.com) Colliers put first-quarter vacancy slightly higher at 8.1% and said gross activity hit 12.5 million square feet, about 1.2 million square feet above the 10-year quarterly average. The firm also said asking rents fell 4.1% from the prior quarter and 39% from the market peak in the second quarter of 2023. (colliers.com) Savills reported an even softer reading, with Inland Empire vacancy at 9.9% after four tenants of more than 1 million square feet each moved out in the first quarter. Savills also said construction is expected to stay subdued, with supply and demand moving closer to balance over the next 18 months. (savills.us) That backdrop helps explain why investors are still chasing smaller, leased warehouses in Fontana even as giant boxes sit empty elsewhere. Bridge Logistics Properties said there are virtually no new buildings under construction in the 100,000-to-250,000-square-foot range in Inland Empire West, the same size band as this Banana Avenue asset. (connectcre.com; businesswire.com) Bridge has been building out that bet in Fontana. In July 2025, the firm bought a three-building, 332,793-square-foot industrial portfolio in the city for $83.5 million, adding to a local acquisition streak that has continued into 2026. (businesswire.com)) California’s new warehouse rules are also tightening the development pipeline. Assembly Bill 98, signed in September 2024 and effective January 1, 2026, set statewide standards for new or expanded logistics projects, including truck routes, buffers, loading areas and other design requirements. (calmatters.digitaldemocracy.org; sandiego.gov) For now, the Fontana trade shows where capital is still landing: modern buildings, leased tenants, and locations close to the Inland Empire’s freight corridors. In a market with higher vacancy and fewer new starts, that combination is still drawing buyers. (connectcre.com; cbre.com)