A freestanding industrial building on Zevo Drive in Temecula has changed hands for $6.3 million, with manufacturer Poly-U Molding & Manfacturing acquiring the 24,575-square-foot facility in a deal that pencils out to $256.87 per square foot. The single-tenant property, which sits on a 1.50-acre all-concrete yard, was purchased from Gregery A. and Andrea M. Stringer.
The transaction, reported by CoStar, places the building at 42210 Zevo Drive, a stretch of Temecula's industrial district within California's Inland Empire that has drawn repeated investor and owner-user interest in recent months. The price per square foot lands above the broader region's average industrial sale price of $191.56 per square foot recorded in the second quarter of 2026, according to a Kidder Mathews market report, which also noted an average cap rate of 6.0% for industrial sales during that period.
Zevo Drive Keeps Attracting Big-Ticket Deals
This is not the first notable sale on the corridor. Avison Young completed an off-market, $28 million sale of a 224,350-square-foot industrial facility at 41995 Zevo Drive, a property spanning 15.1 acres, according to a report from inlandempire.us. Karney Properties bought that facility through a 1031/1033 exchange with plans to hold it long-term, while the seller, Zevo Drive Holdings LLC, had operated it as Glasswerks.
Before that sale closed, Motorola Solutions had signed a 12-year lease for roughly 107,000 square feet at the larger Zevo Drive property, and Keystone Automotive/LKQ Corp. had signed a seven-year lease for about 35,000 square feet, per the same report. Those long-term commitments underscore the kind of tenant demand that has kept industrial assets along this stretch of Temecula in high demand among both investors and owner-users.
Temecula's Tight Industrial Market
Temecula's industrial scarcity extends beyond single-tenant buildings. The city's current multi-tenant industrial vacancy rate sits at approximately 1.1%, according to CBRE, which also arranged the $13.5 million sale of a three-building, 68,073-square-foot multi-tenant industrial park at 40880, 40935 and 40945 County Center Drive to Jewell Capital LLC. That park was 97.4% leased at the time of sale and had maintained occupancy above 95% for more than seven years, CBRE reported, adding that investor demand for well-leased, multi-tenant industrial properties in Temecula remains strong given the low vacancy and long-term growth fundamentals.
A Mixed Picture Across the Inland Empire
Zoom out to the broader Inland Empire, and the industrial picture gets more complicated, with market research firms diverging on key figures for the second quarter of 2026. Colliers reported that vacancy dipped 30 basis points to 7.8%, calling it the first quarterly improvement in more than a year, while Kidder Mathews put direct vacancy at 7.6%, up from 7.5% the prior quarter and 6.6% a year earlier.
The two firms also disagree on absorption. Colliers found net absorption rebounding to 3.1 million square feet after a negative 3.6 million square feet in the first quarter, while Kidder Mathews reported net absorption at negative 186,642 square feet for the quarter, even as year-to-date absorption remained positive at 1,387,417 square feet. Asking rents likewise diverged slightly, with Colliers citing $0.99 per square foot on a triple-net basis — the first time average rents dipped below a dollar since the third quarter of 2021 — and Kidder Mathews citing $0.98 per square foot on the same basis. Construction totals split as well, with Colliers citing 6.1 million square feet underway and Kidder Mathews citing approximately 6,853,803 square feet.
Despite the conflicting figures, Colliers noted that gross industrial leasing and sales activity across the region hit 16.7 million square feet in the quarter, the highest quarterly total on record. Kidder Mathews, meanwhile, pointed to the region's largest sale of the quarter — a two-property Amazon portfolio at 1660 N Linden Ave in Rialto totaling 1,469,848 square feet that sold for $270 million, or $183.69 per square foot — as evidence of continued big-ticket investor appetite. The firm expects vacancy to ease over the coming year as new construction slows and demand for logistics space increases.
