Logistics now looking to the High Desert

Published on

logistics high desert
Photo credit: Davina Fisher

 

HIGH DESERT – Southern California’s shortage of available warehouse space, as well as other factors, has caused companies to rethink how and where warehouse sites are chosen. According to logistics expert Jon DeCesare, CEO of World Class Logistics Consulting, future warehouse facilities are likely headed for the High Desert including Apple Valley, Victorville, Hesperia, Adelanto, Barstow and Phelan.

During the Society of Industrial and Office Realtors industry dinner, DeCesare talked about factors that have caused the supply-chain disruption including the pandemic lockdown, increased demand from e-commerce sales and port congestion.

 





 

“We don’t see the tide turn in 2022 – infrastructure problems, labor constraints, high demand and reduced capacity will continue to trouble the market,” said DB Schenker Chief Operating Officer for ocean and air freight Thorsten Meincke. “Stakeholders in the industry don’t see much relief coming for shippers anytime soon. It will not get better and 2023 will be worse.”

DeCesare mentioned four opportunity areas in Southern California where the next building booms may occur – the High Desert, Antelope Valley, Tejon Ranch and I-10 corridor east of Banning to Indio. 

Newmark Research reports that industrial space in the Inland Empire is currently non-existent as pre-leasing has become the norm for industrial tenants. With little space to choose from, tenants are locking in deals for properties before they come to market. This tight market has pushed rents up to the highest rates the region has ever seen.

Industrial developers are also noticing the surge in demand – around 33.3 million square feet of industrial real estate is under construction across the Inland Empire. 

According to the report, developers are moving further inland to “areas once deemed tertiary,” including Victorville, as more cities become hesitant to add industrial properties.

To read the full Newmark report click here.

spot_img

Latest articles

Report says California median home price sets new all-time high at $904,210

CALIFORNIA – The California Association of Realtors (CAR) published a report, May 17, showing...

Victorville makes CA’s top 10 cities with the largest numeric change in population 

SAN BERNARDINO COUNTY – The California Department of Finance published, last month, a report...

Department of Finance says California gained 67,000 people in 2023

CALIFORNIA – The California Department of Finance released a demographic report, April 30, with...

Victorville hosting street vendor educational program May 16

VICTORVILLE – Victorville is hosting, May 16, a free, educational workshop led by San...
Powered by Foreclosure.com

More like this

Report says California median home price sets new all-time high at $904,210

CALIFORNIA – The California Association of Realtors (CAR) published a report, May 17, showing...

Report says CA housing affordability improved – $208,400 income needed for median home price

CALIFORNIA – California Association of Realtors' (CAR) quarterly Housing Affordability Index report, published May...

Hesperia awarding $1,000 in gift cards to resident who takes pride in their home

HESPERIA – Hesperia is asking for nominations for their quarterly Pride Enhancement Program (PEP),...