Newmark PCG

April 13, 2021

West Rancho Dominguez is an unincorporated, census-designated territory in the South Bay of Los Angeles. It is bounded by the City of Carson to the West and Compton to the East. Originally part of the Rancho San Pedro land grant in 1784, West Rancho Dominguez is now an industrial hub in the South Bay of Los Angeles. The proximity to the port and easy access to highways provides the territory’s major distribution facilities and manufacturing tenants and owner/users a solid base to serve Southern California.

West Rancho Dominguez is defined as the area bounded by Alondra Boulevard to the South, Figueroa Street to the West, Rosecrans Avenue to the North, and Central Avenue to the East. The Newmark Private Capital Group has seen significant investment demand in West Rancho Dominguez through our two recent sales at 15100 S San Pedro and 400 W Rosecrans Ave, and our current marketing of 245-261 E 157th St, a 70,546-square-feet industrial project in the center of West Rancho Dominguez.

West Rancho Dominguez Supply

Industrial/FlexOfficeRetailMultifamily
Buildings3713346
Avg. Building Size28,0652,5503,25750,256
Inventory (SF)10,412,1527,650110,721201,025
Vacancy (SF)187,94708,5002,613
Availability (%)1.8%0.0%7.7%1.3%
Newmark Private Capital Group & CoStar Research, 2021

Doing Business In Unincorporated Territory

West Rancho Dominguez is in an unincorporated territory of Los Angeles County, meaning that there is no local municipality and the land falls under County jurisdiction. The zoning code is set by the Los Angeles County Department of Regional Planning, who also grants permits and variances. Industrial operators generally prefer unincorporated areas because they do not require a busi­ness license from Los Angeles County, unless they are subject to County health or safety regulations. Some unincorporated areas have County utilities; however, an infill location like West Rancho Dominguez has Southern California Edison as a power company and the neighboring cities of Gardena and Compton provide other services normally provided by a city.

Green Zone Program

In 2015, the Los Angeles County Board of Supervisors, the governing board for unincorporated territory, started the process of a General Plan update for all unincorporated territory, titled the Green Zones Program. This General Plan update will place restrictions on industrial uses to “enhance public health and land use compatibility.” The public comment period on the draft environmental impact report (EIR) and draft ordinance ended in February 2021, and the County is expected to vote on the ordinance in August 2021.

The ordinance will create 11 new Green Zone Districts within the unincorporated territory of the County. Each district will have new development standards and restrictions placed on properties near “sensitive uses,” specifically industrial uses that could cause harm to public health nearby schools, parks, and homes. The ordinance will require compliance for current industrial occupants within three to seven years, and new occupants may require a conditional use permit.

West Rancho Dominguez Industrial Demand

The West Rancho Dominguez industrial market is in a prime location in the South Bay of Los Angeles with strong demand. Industrial space has seen historically low vacancies in the past several years primarily due to the expanding global economy and the proximity to the LAX/Long Beach Ports, which is the busiest seaport complex in the United States and ranked fifth in air freight volume. Due to the significant transportation volume, the market is a mix of large and small distribution centers occupied by tenants like Amazon and FedEx, manufacturing centers, and headquarters with owner/users like Sit n’ Sleep. Since the area is built out, the supply of industrial space has been relatively stable. The increases in inventory have been mainly due to institutional developers and investors, with a 112,075-square-foot project delivered to Sam’s Club in 2019 by Panattoni Development and another project is currently proposed by Rexford Industrial.

West Rancho Dominguez map of major tenants

The full report includes, among other information, a map of the major ownership groups, the current development pipeline, and recent sales and leasing activity in West Rancho Dominguez.

Disclaimer: The information contained in this article is provided for general informational purposes only, and should not be considered or treated as legal or tax advice and represents only general information that may or may not be applicable to the reader’s particular situation. The reader should consult its own attorney and/or tax advisor if specific guidance, information, or advise is required.

About the Author(s)

Ryan Plummer focuses on selling $5 and $25 million office and industrial properties and has been involved in the disposition of more than $3 billion of office, industrial and retail assets throughout the Western United States.