— By Joseph W. Brady, CCIM, SIOR, President, The Bradco Companies —
A population boom has brought houses, companies and retailers to the High Desert also known as the Mojave River Valley.
The “High Desert” used to be a term that referred to one area: the northern region of San Bernardino County that is beyond the Cajon Pass. As such, many other “High Desert” popped up, including the nearby Joshua Tree Area, in addition to namesakes in Arizona, Nevada and Oregon.
That led this particular area to be rebranded as the Mojave River Valley, notes Joseph W. Brady, president of The Bradco Companies in Victorville, Calif. As a long-time, 35-year resident, of the Mojave River Valley, he is the longest serving commercial broker in the region.
What is the current state of commercial real estate in the Mojave River Valley?
Retail is rather steady, with each of the cities — Apple Valley, Adelanto, Hesperia, and Victorville — all seizing new opportunities for commercial. Sprouts grocery stores (remodel of the former Toys”R”Us) are coming into Victorville and the Town of Apple Valley. We also have many smaller national tenants that continue to expand in the retail marketplace. Retail vacancy levels continue to drop, and rents are increasing.
The major push in the last two years has been industrial. Most of the major large parcels of land within the five incorporated cities that have utilities are under contract. The Valley has a base industrial market of about 28 million square feet, with nearly 3 million square feet recently completed at Southern California Logistics Airport. This includes Amazon, Iron Mountain and Mars’ pet division. Master developer Covington Capital recently developed three parcels in Hesperia totaling nearly 221 acres. Modway has already completed their building within this master plan, which is over a million square feet, while Exeter recently signed a 10-year lease with Fellowship Warehousing. That building is 1.1 million square feet and recently completed.
What impact do you believe the Brightline Speed train will have on the Mojave River Valley?
We expect a large surge in growth due to the prospect that Brightline’s “Speed Train” will be funded before end of December. Brightline has received all its approvals and permits and is just waiting on government funding now, which will hopefully be received by the end of the year. The $10 billion project, which will take four years to complete, will connect Rancho Cucamonga to Hesperia, then Apple Valley and then the Las Vegas Strip.
Where do opportunities lie for commercial investors and developers?
There is a huge need for multifamily and workforce housing as the Brightline project moves forward and the Burlington Northern Sante Fe (BNSF) railway works on its 4,500-acre Barstow Integrated Gateway (BIG) in Barstow that is expected to create about 22,000 jobs. We have a huge lack of multifamily housing to satisfy the desires of many of these workers.
What are the benefits of investing and developing in the Mojave River Valley?
The benefits of developing in the High Desert/Mojave River Valley are that you have five very pro-growth cities that want good, well-planned and well-thought-out development. While the cities must work under federal and state guidelines, they are more pro-growth than many of the cities down below. We also have our own Air District, the Mohave Desert Air Quality Management District, which is far less restrictive than the South Coast Air Quality Management District.
What are the challenges?
I believe the cities need to work more cooperatively with the development community on infrastructure projects. The cities ultimately need to come together, for example, to work on a major road that encircles the region. Victor Valley Community College is facing a discussion with Assemblyman Juan Carrillo, Tom Lackey and State Senate Scott Wilk.
Where do you see this High Desert heading in the next few years?I moved from Santa Barbara to the High Desert Mojave River Valley 35 years ago. When I came here, there were about 125,000 people within what we now call the five incorporated cities (Hesperia and Apple Valley were not incorporated until 1989.) We have over 550,00 people in the region now, including Barstow. I absolutely believe without a doubt, that the Valley will double in size in the next 25 years thanks to efforts like The Brightline West project, the BNSF project and Silverwood Master Planned Community in Hesperia, which includes approximately 15,663 dwelling units.