Your landlord's sale is a rent increase you never negotiated
Inland Empire industrial sales ran 8.7 million square feet in the first half, up 150% year over year. Every closing reset a property tax basis. In a standard NNN lease, the sitting tenant absorbs the difference, and most leases never addressed it.
Your landlord's sale is a rent increase you never negotiated
Jurupa Valley put three deals on August's top-transaction sheet, and one of them was an investment sale. That sale is the one that changes what the building next door costs to occupy.
Three of the sixteen largest Inland Empire transactions in August landed in Jurupa Valley: US BIC Logistics expanded into 139,933 square feet at 11201 W Iberia Street, Continental Molding & Door Products signed 122,470 square feet at 10225 San Sevaine Way, and MDH Partners bought 118,644 square feet at 4388 Serrano Drive. Roughly 381,000 square feet across a lease, an expansion and a sale, in one city, in one month.
The sale is the one worth reading. Under Proposition 13, a California property's assessed value can rise no more than 2% a year, and it is reappraised at full market value only on a change in ownership or new construction. A building held ten years carries an assessed value anchored to what someone paid a decade ago. On the day it sells, that anchor is cut.
Change of ownership → reassessed at market
Inland Empire investment sales ran 8.7 million square feet in the first half of 2026, up 150% year over year, with dollar volume up 75.3% to $1.64 billion and cap rates compressed to 5.8% from 6.7%. Each of those closings reset a basis. A tenant on a triple-net lease pays its proportionate share of real property taxes, and standard lease language does not distinguish a tax increase caused by the landlord selling from one caused by the county raising rates. The tenant had no say in the sale and usually no notice of it. The first signal is the tax line on a reconciliation months later.
Jurupa Valley sharpens the arithmetic. Riverside County's combined rate typically runs 1.1% to 1.4% of assessed value, but Jurupa Valley is one of the jurisdictions where Mello-Roos districts push the effective rate past 1.5%. The same reassessment costs more here than it would in an older tax rate area.
Ask for Prop 13 protection by name. The workable structures are well established: exclude the first reassessment during the term, cap the tenant's share of any increase by dollar amount or percentage, limit how often a reassessment can be passed through, or require the increase to be amortized over the remaining term rather than billed in the year it lands. Term length is the multiplier. A ten-year deal is simply more likely to contain a sale than a three-year deal, so the longer the lease, the harder this clause is worth fighting for. If the building has been held a long time and the assessed value is far below what it would trade for, you are the one carrying that gap.
120,000 SF Jurupa Valley building
Assumptions, not survey figures: prior owner acquired in 2016 at $95/SF, assessed value trended at the Prop 13 maximum of 2% a year since, building sells in 2026 at the H1 median of $231/SF, effective tax rate 1.15%. Substitute your building's actual assessed value from the county roll.
Against the Q2 2026 IE West average of $1.038/SF NNN for 100,000 SF-plus space. In a Jurupa Valley Mello-Roos district at 1.5%, the same reassessment runs $207,352 a year, or $1.73 per square foot. The tenant pays this on top of the rent it negotiated, for a building it already occupies.
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One email a week. Unsubscribe anytime.Each issue costs out one thing Inland Empire industrial tenants are absorbing, with the arithmetic shown. No listings, no market cheerleading.
I cover industrial sales, leasing and land across San Bernardino and Riverside Counties. Happy to pull your building's assessed value off the county roll and show you the gap you are carrying.