Terreno Realty's Strategic Redevelopment in Rancho Dominguez, CA

Terreno Realty Corporation (TRNO) has recently completed the redevelopment of a 2.8-acre improved land parcel in Rancho Dominguez, California, further strengthening its position in the regional industrial real estate sector. The redeveloped property, an improved land parcel on the site of a former 51,000 square-foot building at 14805 S. Maple Avenue, is adjacent to two Terreno Realty Corporation improved land parcels on S. Maple Avenue and between Los Angeles International Airport (LAX) and the Ports of Los Angeles and Long Beach. The total cost of the redeveloped property is approximately $28.3 million.

The redeveloped property is 100% leased on a short-term basis to a trucking and transloading provider for 18 months, with a stabilized cap rate of approximately 2.3%. This strategic location offers easy access to major transportation hubs, reducing logistics costs and improving supply chain efficiency for tenants. The proximity to LAX, one of the busiest airports in the world, and the two major ports, which handle a significant portion of U.S. imports and exports, makes the property an attractive choice for logistics, distribution, and e-commerce companies.



The redeveloped property's stabilized cap rate of 2.3% is lower than Terreno Realty's average cap rate of 4.5% (as of 2024-09-30) and the industry average of 5.5%. This indicates a higher expected return on investment for the redeveloped property. The 18-month lease to a trucking and transloading provider is expected to have a positive impact on Terreno Realty's revenue and occupancy rates, contributing to the company's strategic expansion moves.



Terreno Realty's focus on functional, flexible, and infill real estate in high-volume distribution points contributes to the property's appeal. The company's effective redevelopment strategy, combined with the property's strategic location, positions it favorably for future growth. As demand for industrial real estate remains strong, particularly in high-growth markets like Southern California, Terreno Realty's redevelopment efforts are likely to attract tenants and enjoy high occupancy rates.

In conclusion, Terreno Realty's redevelopment in Rancho Dominguez, CA, demonstrates the company's commitment to strategic expansion and value creation. The redeveloped property's attractive location and lower stabilized cap rate offer potential for higher returns on investment. As Terreno Realty continues to invest in strategic locations and redevelopment projects, it is well-positioned to capitalize on long-term growth opportunities in the regional industrial real estate sector.