1180 E. 9th St

Property Overview

This is an interesting industrial business park in San Bernardino. The property consists of two buildings totaling approximately 41,902 SF on 3.17 acres of land. Lee & Associates is marketing the property for $5,400,000.

The property is reportedly approximately 63% leased, with 14 vacant units that provide an opportunity to increase rental income.

I generally like these types of investments. They support smaller business owners and provide an opportunity to generate income from multiple tenants rather than depending on a single business. However, there are a few things I would consider before making an offer.

Property Facts

Why I’m Watching It

I generally like industrial business parks as investments. They provide smaller business owners with functional industrial space for their operations, including automotive businesses, contractors, service companies, and other industrial users.

One of the advantages is having multiple tenants rather than relying on one business to generate all the income. Of course, smaller tenants can also mean more turnover, additional management, and varying levels of financial strength.

I also like the location. The property is near San Bernardino International Airport and directly across the street from newer industrial development. The site is fully fenced and secured, and most of the existing tenants appear to be automotive-related businesses.

Another positive is the amount of land. At approximately 3.17 acres, there may be an opportunity to reposition or redevelop the property in the future.

I would consider this a potential covered-land investment, where the existing rental income helps offset the holding costs while evaluating longer-term redevelopment options.

Of course, any future development would depend on the zoning, City approvals, site conditions, and overall feasibility.

This property could also be worth considering for an investor looking for a replacement property in a qualifying 1031 exchange, depending on their investment objectives and tax situation.

The Numbers

The current annual NOI is approximately $222,095. At the $5,400,000 asking price, that represents an in-place cap rate of approximately 4.11%.

The opportunity here is leasing the vacant units and increasing the property's income.

Based on the marketing information, the seller is targeting rental rates of approximately $1.25 per square foot per month, all-in.

That is around the range I would expect for comparable small-bay industrial space in this part of San Bernardino, depending on the condition and functionality of each unit.

However, if I were underwriting this property for myself, I would use a more conservative rental rate of approximately $1.00 per square foot per month, all-in, for the vacant units.

I would rather be conservative with the projected income and have the property outperform my expectations than pay for income that has not materialized.

Before determining a realistic stabilized NOI, I would also want to review the rent roll, existing leases, operating expenses, property tax reassessment, insurance costs, and anticipated capital improvements.

Financing is another important consideration.

Based on the current NOI, I would expect a lender to be fairly conservative with the loan amount.

For example, assuming an 8% interest rate, 25-year amortization, and a 1.25 DSCR, the property would support a loan of approximately $1.92 million.

At the current asking price, that means a buyer would need approximately $3.48 million down, before closing costs, reserves, and any additional improvements.

That's a significant amount of cash for a property currently generating a 4.11% in-place cap rate.

Of course, financing will vary depending on the buyer and lender, but it's something I would consider when determining what the property is worth.

What Concerns Me

My biggest operational concern is the parking.

With 44 smaller industrial units and many of the existing tenants operating automotive-related businesses, parking appears limited given the overall site layout.

This could create challenges for the existing tenants and potentially limit the types of businesses that can occupy the vacant units.

Another concern is that the marketing information indicates the property does not have fire sprinklers.

I would verify this with the appropriate building and fire authorities, as well as an insurance provider. It could affect insurance costs, certain tenant uses, and future improvements.

I would also consider the potential cost of installing a sprinkler system as part of the long-term capital improvement budget, even if it is not currently required.

The property was built in 1988, so I would also plan for future improvements to the roofs, paving, electrical systems, plumbing, and other major building components.

Given the automotive tenant mix, I would want to review the property's environmental history as well.

These are not necessarily deal breakers, but they are expenses and risks I would account for before making an offer.

What Would I Pay?

My Number: $4,300,000–$4,500,000

If I were purchasing this property as an investment, I would want to be closer to $4,300,000–$4,500,000.

At that price, the current NOI would represent an in-place cap rate of approximately 4.94%–5.16%.

I would still need to review the actual financials and property condition, but I think that price range better accounts for the vacancy, parking limitations, financing requirements, and future capital improvements.

My biggest point is that I would not want to pay the seller today for income that I still have to work to create.

The upside from leasing the vacant units should be earned by the buyer for taking on that risk.

My Overall Take

Overall, I like the concept of owning a small-bay industrial business park, and I think this property is worth considering.

There is an opportunity to increase the income, and I like the amount of land and the potential long-term flexibility it provides.

However, I would want to purchase it at a price that makes sense based on the income it is generating today, not just what it could potentially generate in the future.

At the right price, this could be an interesting investment. At the current asking price, I would be more cautious.

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Sources & Verification

Property marketed by Lee & Associates. Availability confirmed by NorStone on October 27, 2026.

Property information and financial figures are based on available marketing materials and have not been independently audited. Buyers should verify the rent roll, occupancy calculation, operating expenses, property condition, zoning, permitted uses, and financing assumptions during due diligence. Reported occupancy is approximately 63% (63.2% in the offering); with 44 suites and 14 vacant, the suite-count percentage does not establish occupancy by rentable square footage. Its measurement basis needs confirmation.

The listing materials identify M-1 zoning, while the City’s General Plan includes an Industrial Flex land-use category. The applicable parcel-specific designations and permitted uses require confirmation.

My pricing opinions and underwriting assumptions are independent commentary and are not an appraisal or financing commitment. The rent comparison is my preliminary opinion, not a verified survey. The fenced and secured site description comes from marketing information and should be verified. Redevelopment potential is not approved or guaranteed.

Original Listing: Lee & Associates — Aborn Business Park.