Colton Industrial Building on
For Sale
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2396 E Steel Rd, Colton, CA 92324
7,000 SF industrial building on 0.84 acres in Colton.
Property Size7,000 SF
Lot Size0.84 Acres
Price / SF$407.14
Days on Market154
Property Features for 2396 E Steel Rd
General Information
Standard status
Active
Size
7,000 SF
Lot size
0.84 Acres
Property subtype
Industrial, Land
Zoning
M1
Investment Type
Redevelopment
Building Details
Year Built
1945
Stories
1
Listing Agency:
Sarkis Realty Inc
Listed By:
Ara Dersarkissian · License #01318747
Source:
Crexi
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 2:39PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Sarkis Realty Inc
Investment Insights
Based on property information with market context.
This is a rare opportunity to acquire a freestanding industrial building with a size of approximately 7,000 square feet, situated on a large parcel of approximately 0.84 acres in the Inland Empire. Located in Colton, California, the property is zoned M-1 Light Industrial, accommodating a wide array of industrial, contractor, automotive, and logistics-related uses. The oversized lot provides valuable yard space and excellent truck access, making it suitable for contractor operations, fleet services, distribution, storage, or industrial outdoor storage. The low building coverage also creates a value-add or redevelopment opportunity. The property is strategically positioned with immediate connectivity to Interstate 10, Interstate 215, and State Route 60, offering regional access for logistics and distribution users throughout Southern California. This offering presents a chance for owner-users, investors, or developers to secure a well-located asset.
Key Highlights
- Large ±0.84 acre lot with valuable yard space and excellent truck access.
- M‑1 Light Industrial zoning allows for a wide variety of uses.
- Strategically located in Colton with immediate connectivity to major interstates.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$100,336
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.52%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,006,720
$2.0M
Cap Rate 7%
$1,433,371
$1.4M
Cap Rate 9%
$1,114,844
$1.1M
Market Conditions
NOI Build-Up for 7,000 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$151.2K $21.60/SF
− Vacancy
−$7.9K −$1.12/SF
EGI
$143.3K $20.48/SF
− OpEx
−$43.0K −$6.14/SF
NOI
$100.3K $14.33/SF
Area
San Bernardino County, CA
Vacancy
5.20%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,006,720
Cap Rate 7%
$1,433,371
Cap Rate 9%
$1,114,844
Alternative Uses
Best Use
Retail
$1.43M
$1.25M – $1.67M
NOI $100,336 @ 7.0% cap · market cap 3.52%
Second Best
Warehouse
$997.2K
$872.5K – $1.16M
NOI $69,801 @ 7.0% cap · market cap 2.45%
Theoretical Best
Office A
$1.48M
$1.29M – $1.72M
NOI $103,358 @ 7.0% cap · market cap 3.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,234
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 92324, CA
58,626
Population
19,150
Households
3.1
Avg Household Size
33
Median Age
16%
College-Educated
75%
High-School Grad
27.8 sq mi
ZIP Area
2,109
Density / Sq Mi
$69,419
Median Household Income
$36,956
Median Earnings
$1,600
Median Rent
$413,100
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Extra Space Storage — 155 W Club Center Dr, San Bernardino, CA 92408
- StorQuest Self Storage — 194 Commercial Rd, San Bernardino, CA 92408
- Haulaway Storage Containers - Inland Empire — Inland Empire, 2059 E Steel Rd, Colton, CA 92324
- Self Storage — 194 Commercial Rd, San Bernardino, CA 92408
- Regal Storage Inc — 194 Commercial Rd, San Bernardino, CA 92408
Frequently Asked Questions
What type of property is this?
Warehouse - 7,000 SF industrial building on 0.84 acres in Colton.
Where is this warehouse located?
The property is located at 2396 E Steel Rd Colton, CA.
What is the asking price?
The asking price for this property is $2,850,000.
What are key features of this property?
This property features: Large ±0.84 acre lot with valuable yard space and excellent truck access.; M‑1 Light Industrial zoning allows for a wide variety of uses.; Strategically located in Colton with immediate connectivity to major interstates.
