(Victor Valley)– The High Desert and Victorville in particular, has become a desirable location for businesses to relocate and set up their west coast operations. A prime example is the boom that is happening at the Southern California Logistical Center, or SCLC. Another example is that Walmart has started construction on a Supercenter in the Dunia Plaza next to Lowe’s in Victorville, and they have broken ground on a Supercenter at Main and Escondido in Hesperia.
Commercial Real Estate Brokerage Lee and Associates Inland Empire North recently released their High Desert Retail Market Report for the 3rd Quarter 2011. The report states, “Investors are active in the marketplace seeking discounted and value added properties in anticipation of an increase in occupancy and lease rates in the future. Tenants are also back actively looking to improve their location at a lower lease rate while the market begins recovering.”
Don Brown, President/Broker at Lee and Associates Inland Empire North explained, “One of the things I was encouraged to see in the quarterly report is that investors are active again. Also, that absorption of retail space is actually going up, meaning that more people are starting to lease space. They are making the choice to open up a store or open up another location for the business they already own.”
Brown continued, “Investors are looking at the High Desert because we’ve got a very vibrant market up here. We still have a strong consumer base and a great workforce. Our company is working with several of the larger national chains that are interested in this area.”
Along with the new Walmart Supercenter, a new JoAnn Fabrics is soon to open at the High Desert Gateway center at Main and the 15 freeway. “The Hesperia market appears to be doing well and supply should balance with demand in relation to retail tenants in 2012,” wrote Brown in the report.
“I think we’ve got a real vital economy. Of course it’s been challenged like the rest of the country. The Inland Empire did take a some hits, but it always picks itself up and keeps on going,” said Brown. “The exciting thing about it this time is that we’ve got some real things happening. We now have M&M/Mars relocating to SCLA, United Furniture Industries that just moved here from North Carolina, and Arm & Hammer is now taking over the old space that M&M/Mars was in.”
“When you look at our report you see that the lease rates, if you’ve been tracking it for the last couple of years, inched down just a little tiny bit this last quarter. But when I see absorption start to go back up and now we’re starting to see positive signs in the unemployment figures to where those numbers are starting go down, that usually signifies that the market is starting to stabilize and we’re going to start seeing improvement,” concluded Brown.
For more information on 3rd Quarter High Desert Retail Market Report visit http://www.lee-associates.com.