Industrial and Warehouse Property: Selling and Leasing in the Coachella Valley

Most people think of resorts and golf when they think of the Coachella Valley, but the valley also has a working industrial base. It includes agricultural packing and shipping in the east valley, service-commercial along Interstate 10, and light industrial buildings that operate under specific permits. If you own industrial property, the right broker is usually someone who works with users and investors in this property type, not a generalist.

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Local factors industrial owners should know

• Agriculture and SR-86. Agriculture is concentrated in the east valley, and the valley is the primary date-growing region in the US. Coachella has long been an agriculture and shipping hub. State Route 86 is an expressway that has been called the "NAFTA highway" for its truck traffic to and from Mexicali. A proposed Coachella Airport Business Park near SR-86 and Airport Boulevard would change zoning from Heavy Industrial to Manufacturing-Service.
• The I-10 corridor. In unincorporated Thousand Palms, the county's area plan places existing commercial and industrial development along Ramon and Varner roads. The county recently approved a change from residential to Light Industrial and Manufacturing–Service Commercial zoning there. In Bermuda Dunes, the area north of I-10 includes an industrial park.
• Cannabis-permitted buildings. In Desert Hot Springs, cannabis cultivation is allowed only in the Light Industrial zone and requires a conditional use permit. Some buildings' value depends on their permits.
• Proposed mixed-use with industrial. In Indio, the proposed Oasis at Indio, north of I-10, includes an industrial component.
• Impact fees. CVAG's Transportation Uniform Mitigation Fee includes an industrial category, charged per 1,000 square feet of new development. Buyers planning an expansion will factor it in. CVAG publishes the current schedule and a fee estimator.

Selling versus leasing

Selling may suit you if you want to exit or redeploy capital, if an owner-user wants your location, or if a rezoning or nearby project has drawn developer interest. Be ready to show the building's specifications, permits, and any environmental reports.

Leasing may suit you if you want to keep a well-located building and lease it to a business. Lease structure matters: who pays what, the term, and options can change what the property is worth to a later buyer.

Selling and leasing both raise tax questions, including 1031 exchanges. Talk to a qualified tax advisor or CPA.

Broker expertise to look for

• Recent industrial work in the Coachella Valley, ideally in your submarket
• Relationships with owner-users as well as investors
• Familiarity with county versus city entitlement, if you are in an unincorporated area
• Experience with permit-dependent uses, if that applies to your building

Questions to ask a broker

1. Which industrial listings or leases have you worked on in this part of the valley?
2. Who do you think the likely buyers or tenants for my building are, and how would you reach them?
3. How would you present the building's power, clear height, loading, and yard?
4. How do you handle permits or zoning questions during marketing?
5. What representation agreement would you propose, and what are its terms?

How matching works

Tell us your building's location, size, and current use, and whether you want to sell or lease. With your permission, we introduce you to a commercial broker who can discuss your property and representation options. An inquiry does not create a representation agreement. Any brokerage services are provided by the receiving broker.

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More on selling commercial property or leasing commercial property in the Coachella Valley.