The city of Norco may be the latest municipality in SoCal to follow suit with development bans on industrial warehouses.
If approved the measure would go into effect immediately, uniting regions like Jurupa Valley, Colton, and Redlands who already have at least a 45-day moratorium on new construction; Norco being one of eight cities to do so in the last two years including the aforementioned.
Of all these cities, the single constant that is triggering development bans lies in the sub 1% vacancy rates that they are experiencing. But also, locals who are concerned about the impacts of industrial properties on their neighborhoods are also pushing for the measure to be approved.
Due to the Inland Empire’s proximity to the Port of Los Angeles/Long Beach, and the once abundant availability of developable land, the industrial market took a strong hold. The amount of distribution centers in the 1970’s inflated from 160 to well-over 4,000 as of 2021. As it stands there is 33 Million square feet of industrial space under construction in the IE.
The bans are making their way through some industrial-heavy markets and are hitting at a crucial time as hiccups in the supply chain only reinforce the need for industrial manufacturing and logistics warehouses.
Experts don’t believe short-term bans will have long-term effects on the industrial sale cycle, and if anything, will only trickle more business into cities like Victorville or Coachella Valley. However, industrial property reputation stands to be berated. The moratoriums are only shedding light on the negative impacts of Industrial, opposed to the positive economic impacts. Among these are job creation and taxes generated.
In Los Angeles County, the city of Pomona is awaiting approval to extend its established 45 day moratorium.