CLOSED: 18.5 Acres - Industrial - North Apple Valley

Property located in a land constrained market

Reeder Land Company can announce the closing of 18.5 acres of land located in the North Apple Valley Industrial Specific Plan.

The NAVISP is the next logical place for logistics development in the High Desert, as land has become increasingly scarce elsewhere.

The state of the region’s land market is best understood by looking at the Amazon transaction in Hesperia, which was for a per square foot price previously unheard of in the desert. Purchases of land by logistics users in Apple Valley have also reached prices that would have raised eyebrows a few years earlier.

There are also large potential changes that could affect the region in the future, such as BNSF’s massive planned project in Barstow.

Industrial projects in the lower Inland Empire have also run into the buzz saw of public opposition recently.

It’s not well understood that much of the desert cannot effectively be developed as it’s hindered by extremely splintered ownership, severe infrastructure problems, or natural drainage issues.

In fact, much of the NAVISP is affected by the splintered land ownership issue. Perhaps as much as 35% of the total land area consists of parcels five acres or smaller - making them nightmares to assemble into anything of development scale.

There are other potential catalysts on the horizon as well, including the increasing interest in Sacramento to address the broken CEQA process.

However, the future for the subject parcel, and others like it, will be primarily driven by the supply/demand balance for real developable properties.