Shopoff realty plans 1 MSF Inland Empire Distribution Center

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Shopoff Realty Investments has acquired a 55-acre property in California’s Inland Empire East region and plans to develop a 1 million-square-foot distribution and warehouse space.

The location has good visibility and direct access to the major trade route Interstate 10 and can serve the Southern California ports to the West region.

The property is entitled and ready for development. Shopoff anticipates breaking ground in the third quarter of 2024, and the project is expected to take 12 months to complete.

Ian DeVries and Chris DeVries of Colliers International along with Brad Yates and Stefan Pastor of Stream Realty will handle tenant lease up. The firm will begin marketing the projects to tenants prior to project completion.

Upon completion, the project will total more than 1 million square feet, with 167 docks, 498 trailer stalls and a 42-foot clear height.

Stream Realty Partners Executive Vice President Brad Yates told Commercial Property Executive that as e-commerce and consumer demand continue to grow, the need for large-scale warehouse facilities is expected to increase. Desert Hot Springs, with its available land, infrastructure and proximity to major markets, presents opportunities for the expansion of million-square-foot warehouses to meet the evolving needs of the logistics industry.

I-10’s significant role

Interstate 10 plays a significant role in the economic landscape of Arizona and Southern California, serving as a major commerce corridor that fuels economic growth. Here are some key incentives and benefits it brings to the region:

The I-10 corridor runs across the U.S. from California to Florida, connecting major ports, cities and markets, and is a vital route for transportation and distribution.

Tanner Jansen, Stos Partners vice president of Acquisitions, told CPE that recent strikes by the dockworkers backed up ports’ production, but that has since been resolved and their supply has increased.

“There’s been larger demand due to the reduction of Panama Canal traffic from the drought conditions in Central America,” Jansen said. “This delay is causing increased cost, and some logistics demand that typically lands on the east coast, is landing on the west coast and is being transported across the country.”

“California and the West Coast markets are also seeing a recent reversal in their population declines that they suffered during the pandemic, which will bring back further demand for warehousing along the I-10,” Jansen added.

Improving the corridor’s infrastructure

Significant investments have been made to improve the corridor’s infrastructure, according to Yardi Matrix’s Doug Ressler.

The San Bernardino County Transportation Authority and the California Department of Transportation have invested in adding Express Lanes to I-10 in San Bernardino County, which will improve travel time and relieve congestion.

The project components are expected to yield a benefit/cost ratio of 8.0, representing over 500 million person-hours of savings over a 20-year analysis period. Freight benefits are estimated at $1.4 billion over the same period.

The corridor is being upgraded to address a nationally significant freight bottleneck, which will improve the efficiency and reliability of regional freight flows.

I-10 is considered the backbone of the transportation system, providing businesses and their customers with essentials like food and fuel. The interstate supports Arizona’s position at the heart of a regional economy that stretches from Southern California to Texas. This trillion-dollar market relies on I-10 for efficient links to trade and commerce.

Arizona has invested significantly in I-10, with projects such as widening the highway between Phoenix and Tucson. This $400 million investment aims to alleviate traffic pressure, improve public safety and accelerate future growth. These improvements and expansions of I-10 also position Arizona to receive additional federal funds, which can further enhance the state’s transportation infrastructure and economic prospects.

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