Sam's Club, CEQA, Warehouse Lawsuits, and More News from the Market
Development news covering the Inland Empire
Riverside County Faces Lawsuit Over Proposed Warehouse Project
- Environmental groups have sued Riverside County over a 1.2 million-square-foot warehouse project, citing concerns about increased air pollution and disruption to local habitats.
Related:
Environmental Groups Challenge Riverside County Warehouse Approval (Source)
Councilmembers Unanimously Oppose Vineyard Avenue Warehouse Project (Source)
California Legislators Clash Over Environmental Exemption in New Housing Bill
- A new bill proposed by Assemblymember Buffy Wicks aims to exempt most urban housing developments from the California Environmental Quality Act, potentially reducing litigation and legislative debates over housing projects.
- If passed, this could mark one of the most significant changes to the 55-year-old law, altering how environmental and development issues intersect in California's housing policies.
High Desert Symposium Highlights Key Developments in Barstow and Hesperia
- The 12th annual High Desert Economic and Real Estate Symposium & Forecast featured discussions on major project developments, drawing significant audience interest.
- A major highlight was the upcoming construction of a Sam's Club in Hesperia, which is currently under entitlement review, as shared by Hesperia City Manager Rachel Molina.
Related:
High Desert Symposium Highlights Major Regional Developments (Source)
Brightline West Secures Funding for High-Speed Rail Project
- Brightline West is finalizing $6 billion in bank loans and construction contracts for its $12 billion high-speed rail project between Las Vegas and Southern California, having successfully sold over $2.5 billion in private activity bonds.
- The bond sale exceeded expectations by $1 billion due to favorable interest rates, with additional financial support coming from state bond sales and a $3 billion Federal Railroad Administration grant, ensuring the project's sustainability through four years of construction.
Related:
Brightline West's Private Activity Bonds Sale Exceeds Expectations with High Demand (Source)
New Logistics Facility Defies Construction Slowdown in Inland Empire
- Newcastle Partners is developing the Mesa Linda Logistics Center in Hesperia, adding significant warehouse and distribution capabilities to San Bernardino County by early 2026.
- JLL Capital Markets has secured $27.5 million in construction financing, facilitating the project's advancement amid a regional trend of slowing construction.
Related:
Newcastle Partners Secures $27.5 Million for Hesperia Logistics Center (Source)
Hesperia's Challenges with Developing Housing on Fragmented Land (Source)
ARCO Breaks Ground on $96M Logistics Facility in Apple Valley
- ARCO has started building a $96 million logistics facility for Lecangs, aimed at boosting its third-party logistics operations.
- The 1,207,135ft² facility, featuring a 40ft clear height and over 200 dock doors, marks the most significant industrial development in the area since 2018 and includes extensive infrastructure improvements.
Related:
ARCO Begins Construction on $96M Logistics Facility for Lecangs in California (Source)
Apple Valley's Largest Industrial Development Since 2018 Reinforces Its Role as a Logistics Hub (Source)
Homebuilders Face Increased Costs Due to Tariffs
- The National Association of Home Builders/Wells Fargo Housing Market Index dropped to its lowest level since last August at 39, reflecting decreased homebuilder sentiment mainly due to concerns over rising construction costs.
- Builders are adjusting to President Donald Trump's tariff policies, which include a 25% levy on steel and aluminum imports, by adding approximately $9,200 in additional costs per home in response to increased building material costs and other supply-side challenges.
Related:
Trump's Tariff Policies Impact on Home Building Costs (Source)
Homebuilder Stocks Face Challenges as Market Conditions Deteriorate (Source)
Newsom Suspends Environmental Laws to Expedite Rebuilding in Fire-affected Areas
- Governor Gavin Newsom has temporarily suspended California environmental laws, including CEQA and the California Coastal Act, to accelerate the reconstruction of critical utility infrastructure in fire-affected zones.
- Newsom advocates for the underground installation of utility equipment where possible to reduce the risk of future fires and aims to rebuild impacted communities like Altadena and Malibu to be stronger and more resilient.
Southern California Industrial Real Estate Market Faces Challenges Amid Signs of Stabilization
- Asking rental rates in Southern California's industrial market remain below historical highs as vacancy rates rise, with increased import volumes and new legislation potentially boosting market fundamentals despite slowed leasing activities.
- Los Angeles County's availability rate suggests future vacancy increases, while similar trends in Orange County and the Inland Empire reflect a broader market shift, leading to decreased asking rental rates yet highlighting a stabilizing market environment.
Caltrans Announces $48.1 Million I-40 Roadway Improvement Project in San Bernardino County
- The resurfacing project on Interstate 40, funded by Senate Bill 1, will cost $48.1 million and aims to improve ride quality and enhance traffic safety by upgrading road surfaces, signs, lighting, and curb ramps.
- Scheduled to start on March 24, 2023, the project is expected to be completed by spring 2026, according to Caltrans.
Related:
Interstate 40 Resurfacing Project Set to Commence in San Bernardino County (Source)
Transformation of California Malls with Mixed-Use Development Strategies
- Brea Mall in Orange County has received approval for a redevelopment plan that includes a five-story apartment complex with 380 units and a 90,000-square-foot luxury fitness center.
- The Shops at Palm Desert and Brea Mall are embracing mixed-use developments to adapt to changing consumer preferences and better serve their communities.
Related:
Disney's First Master-Planned Community, Cotino, to Open in Rancho Mirage (Source)