Compton's Commercial Market: A 2025 Snapshot and Outlook
- Compton Chamber Admin
- 4 days ago
- 4 min read
In the first half of 2025, Compton, California, has emerged as a focal point for industrial and commercial real estate activity in Southern California. Strategically located near the ports of Los Angeles and Long Beach, Compton's industrial sector has attracted significant investments, signaling robust confidence in its economic potential.
Industrial Real Estate Surge
Rexford Industrial Realty's $137M Acquisition: In January 2025, Rexford Industrial Realty purchased a fully leased 300,000-square-foot warehouse at 2501 W. Rosecrans Avenue for $137.2 million. The property is leased to logistics firm Forward Air under a 10-year agreement, highlighting the area's appeal to major logistics operators.
CenterPoint Properties' $197M Portfolio Purchase: CenterPoint acquired four industrial buildings totaling 546,900 square feet for $197 million. These properties, located at 111 West Artesia Boulevard, 711 West Walnut Street, 1620 South Wilmington Avenue, and 425 Carob Street, are fully leased, reflecting strong demand in the South Bay submarket.
Colliers' $35M Deal: Colliers facilitated the sale of a 6.09-acre industrial site at 15914 S. Avalon Boulevard for $35 million. The property's location within Los Angeles County’s “Green Zone” presents both opportunities and regulatory challenges for development .
DAUM Real Estate's $16M Sale: DAUM Commercial Real Estate Services completed the sale of a 43,540-square-foot warehouse at 1303 W. Walnut Parkway in Compton. The new owner plans significant renovations to cater to last-mile logistics needs, reflecting Compton area's strategic importance for distribution.
These transactions indicate a robust investor appetite for well-located industrial assets in Compton, driven by the city's proximity to major transportation hubs and its role in regional supply chains.
Retail and Community Development
Beyond industrial growth, Compton is witnessing developments in retail and community infrastructure:
Rosecrans Crossing Retail Center: The 25,094-square-foot retail center at 2251 W. Rosecrans Avenue was listed for $12.95 million. The property is no longer in the market.
With tenants like 7-Eleven, Domino’s, and Martin Luther King Community Healthcare, the center boasts an 88.9% occupancy rate, reflecting stable consumer demand.
Compton High School Redevelopment: Slated to open in 2025, the new Compton High School campus will feature modern academic facilities, a performing arts center, and vocational programs in construction, graphic arts, and robotics. This investment aims to equip students with skills aligned with the evolving local economy.
Challenges and Considerations
While the commercial landscape is promising, certain challenges persist:
Infrastructure Concerns: The introduction of 25 electric school buses by the Compton Unified School District for a whopping $25 million taxpayer-funds has faced criticism. A million dollars per piece. For that amount, Concerns revolve around the buses' reliability during power outages and their performance in adverse weather conditions .The US Sun
Note: While fully equipped high-tech low-emmission diesel school buses at $120-150K remains the best option ($25 million buys 200 of these), school district is increasingly pressured or incentivized to transition to electric alternatives.
Regulatory Hurdles: Properties within designated “Green Zones” must navigate stringent development standards aimed at protecting community health, potentially impacting project timelines and costs .Colliers
Outlook
Compton's strategic location and active investment landscape position it as a burgeoning hub for industrial and commercial activity. The influx of capital into industrial properties suggests sustained confidence in the city's economic trajectory. However, addressing infrastructure reliability and regulatory complexities will be crucial to maintaining momentum. The US Sun
As Compton continues to evolve, balancing growth with community needs and sustainable practices will be key to its long-term success.
As of May 2025, the City of Compton has not formally adopted a municipal "Green Zone" ordinance. However, Los Angeles County implemented a Green Zones Program in July 2022, which may impact certain areas within or adjacent to Compton, particularly in unincorporated regions.
What Are Green Zones?
Green Zones are designated areas aimed at improving public health and environmental conditions in communities disproportionately affected by pollution. The Los Angeles County Green Zones Program, adopted by the County Board of Supervisors, seeks to enhance land use compatibility and reduce environmental hazards in these areas. The program includes land use policies, zoning regulations, and community engagement strategies to address environmental justice concerns. LA County Planning
Who Introduced Them?
The Green Zones Program was introduced by the Los Angeles County Department of Regional Planning and adopted by the County Board of Supervisors. The program was developed through extensive community engagement and environmental justice screening methods to identify and address pollution burdens in specific communities. LA County Planning
How Do They Affect Industrial and Commercial Activities in Compton?
While Compton itself has not enacted a Green Zone ordinance, businesses operating in or near designated Green Zones in unincorporated areas adjacent to Compton may be subject to certain regulations.
These can include:
Enhanced Land Use Regulations: New and existing industrial and commercial operations may face stricter zoning requirements to ensure compatibility with nearby residential areas and sensitive land uses.
Environmental Compliance: Facilities may be required to implement additional measures to control emissions, manage waste, and reduce environmental impacts.
Community Engagement: Businesses might need to engage with local communities to address environmental concerns and participate in public outreach efforts. Compton 2045
It's important for businesses in Compton and surrounding areas to consult with local planning authorities to determine if their operations fall within a Green Zone and understand the specific requirements that may apply.
For more detailed information, businesses can refer to the Los Angeles County Planning Department's Green Zones Program resources.