Inland Empire
Famous 75 mile circle
The 75-Mile Circle: The Victor Valley
A 75-mile circle surrounding Los Angeles encompasses the Victor Valley region of Southern California’s Inland Empire. Professional Land Corporation has a diverse inventory of prime Southern California properties in a multitude of locations, including the fabulous Victor Valley, and other Inland Empire locations that lie outside of the Victor Valley, such as Barstow and the surrounding communities.
The Inland Empire
The Inland Empire consists of San Bernardino and Riverside Counties. The U.S. Commerce Department has predicted that the Inland Empire, which lies next to Orange, Los Angeles and San Diego Counties, will outperform the growth rate of any other area in the United States. Furthermore, the California Department of Finance has predicted that the Inland Empire in the next decade will be the fastest growing urban area of California.
Manufacturing index rises for second straight month in the Inland Empire in 2009
According to the Riverside Press-Enterprise, July 1, 2009, the Inland Empire’s factories appear to be continuing a slow climb back toward being one of the region's active economic sectors, a report released Wednesday found.
The Purchasing Managers Index for San Bernardino and Riverside counties rose to 51.8 in June from 50.7 the previous month, the Institute of Applied Research at Cal State San Bernardino reported. It was the second straight month the index has been above 50, which is considered to be one of the Inland Empire’s key economic indicators.
If the Purchasing Managers Index stays above that level one more month, it will signal that manufacturing in the two-county area has started an expansion cycle after a slow period that has lasted more than a year. Economists look for three straight months of readings on the same side of 50 before considering a trend. A higher Purchasing Managers Index is significant for the economy because it means factories may have to hire workers or purchase supplies from Inland area vendors.
Victorville grows 2.5 percent in 2008, and leads all of San Bernardino County
According to the Victorville Daily Press, April 30, 2009, the Inland Empire city of Victorville had the fastest-growing population in San Bernardino County in 2008, even as population growth countywide leveled off, according to figures released Thursday. The County’s population grew from 2,044,895 in January 2008 to 2,060,950 in January 2009, according to the California Department of Finance. That amounts to an increase of 0.8 percent. Only six cities in the county grew by more than 1 percent.
The California Department of Finance reported the following 2009 population figures for the growth of local cities in 2008:
• Adelanto — 28,265, 0.9 percent growth
• Apple Valley — 69,861, 0.3 percent growth
• Barstow — 24,213, 1.7 percent growth
• Hesperia — 88,184, 1.1 percent growth
• Victorville — 109,441, 2.5 percent growth
Inland Empire growth continues in 2008
According to the Hesperia Star, August 25, 2008, the Inland Empire region has grown fast, and more people are moving in. According to a report by Joseph Hayes, who shared his findings during the Hesperia Chamber of Commerce monthly luncheon meeting on Aug. 18, a million people will move into the Inland Empire over a 10-year period that began in 2005. Even if regional growth slows due to the economic downturn, the population will become larger than Oregon's.
The study, "The Inland Empire in 2015," was authored by three Public Policy Institute of California researchers, Hayes, Hans Johnson and Deborah Reed. The report, which was released last spring, was funded by the James Irvine Foundation. Job wise, it will be harder for those without college degrees to find a job. That is because there will be a larger pool of workers with college diplomas and only a modest increase in demand, according to the study. Similarly, wages are expected to increase only slightly.
Demographics will also change. Latinos, which are one of the fastest growing segments in the Inland Empire, will become the new majority. Affordable housing will continue to be the engine that drives the migratory motor, according to the report.
The Inland Empire is ranked no. 3 in the nation for job creation in 2007
According to the San Bernardino Sun, September 26, 2007, the Miliken Institute conducted a two-year study on job creation and retention and rated the Ontario-San Bernardino-Riverside area (“Inland Empire”) as No. 3 among 200 large U.S. metropolitan areas, which beats its No. 10 national ranking in 2005.The Inland Empire was the only California region in the nation’s top 15. "This study shows that this area is an economic powerhouse, and will remain one for the next several decades," Ontario City Manager Greg Devereaux said. "This area is Orange County from 20 years ago on steroids or like Phoenix, but at an exponentially higher level. “
"The Inland Empire has consistently been one of the national leaders in job growth," said Ross DeVol, director of regional economists at the Milken Institute and primary author of the report. The Inland Empire has been helped in job creation by the surge of over 129,000 workers with university credentials who have moved to the region. This has brought high-income consumers to the region, which has contributed to the Inland Empire becoming an economic powerhouse.
The Milken Study further pointed that the area has shown the ability to overcome the high costs of doing business in California." Moreover, the Report cited L.A./Ontario International Airport as a major reason for the surge, particularly in that it links the area to Asia as a trading partner. The Study also pointed to the growth of Indian Casinos in the Inland Empire.
Lower home prices have been a big advantage for the Inland Empire, but that gap has narrowed. “The area also has become a real international trade hub. In addition, there have been a lot of high-tech companies moving to the Inland Empire." Gloria Gonzalez-Rivera, chairwoman of the economics department at UC Riverside, said that the sharp increase in population has been an important factor in the area's growth. "When you get that many people in an area, the jobs come with them," she said. "People see that they do not need to go to Los Angeles to work or to consume. With high gas prices, people start to feel that if they're going to work in L.A., their salary needs to be much higher." Moreover, the residents of the Inland Empire shop and expect services in their backyard, and then shopping centers naturally have followed and have satisfied the demand.
The California Department of Finance predicts that the Inland Empire will be the fastest growing area in California
According to the Economist, John Husing, in his Report for the year 2000, the CA Department of Finance has predicted that the Inland Empire in the next decade will be the fastest growing urban area of California. The Inland Empire is projected to add 1.1 million more people by 2010, a 34.2% growth rate. That would represent an average gain of 110,121 per year. As a result, the 2010 population would reach 4,310,000.
According to OC Metro Magazine, February 2, 2006, the Inland Empire added 567,676 residents in the five year period 2000-2005, swelling the population of that Region to a staggering 3.9 million.
The U.S. Commerce Department has predicted that the Inland Empire will outperform the growth rate of any other area in the United States
The U.S. Commerce Department has predicted that the Inland Empire, which lies next to Orange, Los Angeles and San Diego Counties, will outperform the growth rate of any other area in the United States.
According to the Economist, John Husing, in his Report for the year 2005, between the years 2000-2020, the Inland Empire’s population is expected to go from 3.2 million to 5.0 million, up 1.8 million. That is more people than will be added by 47 of the Nation’s 50 states. The exceptions are California (12.8 million), Texas (5.6 million), and Florida (4.4 million). Moreover, the Region is expected to add just a few less people than Los Angeles County (1.9 million) and more than San Diego, Orange, Ventura and Imperial counties combined (1.6 million).
As a separate state, the Inland Empire's July 2004 population of 3.8 million was above 24 states, having just passed Oregon (3.6 million), Oklahoma (3.5 million) and Connecticut (3.5 million). According to the U.S. Commerce Department, the Inland Empire had $84 billion in total personal income during 2002, which was higher than Iowa and more than 21 other states in the U.S.A.
This Inland Empire has become a tornado of economic activity and job creation with hundreds of companies moving into the area or expanding their operations in the last three years. Many of them have relocated from Los Angeles, San Diego and Orange Counties. According to the Inland Empire Quarterly Economic Report, April 2005, the Inland Empire is projected to add 40,100 jobs in 2005, which would bring the Region’s employment total to 1,208,633 in 2005.
Victorville is named second fastest growing city in the U.S.A. in 2008
According to the Victorville Daily Press, July 10, 2008, the City of Victorville has been named the second fastest growing city in the nation, second only to New Orleans, the U.S. Census Bureau reported Thursday.
As a part of the Inland Empire, Victorville wasted no time in taking the No. 2 spot after exceeding 100,000 in population in 2007.The population rose by 9.5 percent to 107,221 in the year ending July 1, 2007, according to the U.S. Census Bureau.
“The city is a pro-growth city,” said Victorville Mayor Terry Caldwell. “All five members of the council have stated that as a position and so we’ve embarked on building a prosperous city to create jobs and this ranking is simply a validation of the success of our pro-growth policy.”
The increase in growth has also brought an increase in traffic and a need to build, maintain and repair roads. This is one of the biggest problems associated with the growth, Councilwoman Jo Ann Almond said, adding it’s a problem that can be managed.” You are going to have growing pains whenever a city experiences growth, that’s for sure,” commented Councilman Bob Hunter. “But nothing happens overnight.”
Almond said she expects the growth to continue and the city is currently looking to create opportunities for all the people who have moved here for more affordable housing.” We are working really hard to bring in jobs for those that do live here instead of them having to go down the hill,” she said. Councilman Rudy Cabriales has seen a slight slowdown and feels that this is the perfect time to try to catch up with all of the infrastructure needs of the city, especially dealing with the roads and traffic.” We are putting more money into the budget to build more fire stations, hire more police officers and to build more roads and more parks,” said Caldwell. “Yes, it’s a challenge, but it’s a good challenge.”
Victorville was the only California city that made the top 10 list, but a total of five were on the Top 25. The city’s population exceeded the 100,000 mark for the first time in 2007.
Five Wal-Mart Supercenters are planned for the Inland Empire's Victor Valley
According to the Victorville Daily Press, January 20, 2008, five Wal-Mart Supercenters are expected to open in the Victor Valley portion of the Inland Empire over the next two years. Three stores are proposed for Victorville, one for Apple Valley and one for Hesperia. These Supercenters are expected to nearly double the size of a regular Wal-Mart and sell food, including fresh produce. Each store is expected to generate $750,000 per year in local tax revenues according to John Mendez, spokesman for Wal-Mart in Southern California.
Wal-Mart already has regular discount stores in Apple Valley and in Victorville, as well as a distribution center in Apple Valley. The chain’s interest in expanding came from a combination of population growth and requests from customers for more stores. With the addition of the Supercenters, High Desert residents may see prices drop at other major grocery stores.
Here are the five planned Supercenters:
Victorville: In Victorville, at the Dunia Plaza Shopping Center on Bear Valley Road and I-15, there is planned a Wal-Mart Supercenter combined with a Sam’s Club, as well as three additional parcels for future development. The entire project is expected to employ 720 people on a 33-acre retail site. The Wal-Mart portion will be 231,000 square feet and include an in-store and drive-through pharmacy, a garden center and an auto center. The second proposed Victorville store would be near the corner of Palmdale Road and Highway 395. The third would be on Ridgecrest, near Spring Valley Lake. Wal-Mart is conducting environmental reviews at the sites. City officials are expecting approval later this year, which would mean a possible opening of late 2009 or early 2010.
Apple Valley: The proposed Apple Valley store would be on the southeast corner of Highway 18 and Dale Evans Parkway, between Thunderbird Road and Civic Center Park. The 260,000-square-foot project is scheduled to be reviewed by the town's Planning Commission in early 2008, according to the town’s Web site.
Hesperia: The Hesperia store will be on the corner of Main Street and Escondido Avenue. Wal-Mart is finishing their environmental review there, said city spokeswoman Kim Summers. She anticipates the project will be approved and they are expected to break ground this fall.
Chinese companies are coming to the Inland Empire North in 2007
According to the Inland Empire Business Press, July 7, 2007, Chinese companies are setting up shop in the Inland Empire in the wake of a Chinese government program that helps corporations establish overseas operations. Despite the challenges, more than 300 Chinese companies have located in the Los Angeles and Inland Empire areas over the past five years. More are coming. The number of Chinese companies setting up shop in the United States is increasing as the result of an incentive program created by the Chinese government two years ago.
The Chinese manufacturer, United Plastics, will begin operating a 50,000-square-foot plastic extrusion factory in Barstow in mid July 2007, according to John Rader; Barstow’s Public Information Officer. The $6 million factory will produce 45 new jobs. The factory manufactures plastic eating utensils and foam containers.
In addition, approximately 50 Chinese companies have applied for visas to establish stores at the Barstow Outlets on Mercantile Way. Most are from the city of Yiwu, known as a commodities center in China. The Barstow Planning Commission in September 2005 approved a request from China Factory Direct Inc. for 100 Chinese retail manufacturers to open stores in 80,000 square feet of space at the Barstow Factory Outlet Mall. The deal allows the retailers to sell wholesale and retail goods, but requires warehousing in locations zoned for industrial uses. China Factory Direct has offices in the Chinese cities of Yiwu, Wenzhou and Shanghai. The company helps Chinese businesses acquire visas to operate in the United States, obtain business licenses and other activities.
The Yasheng Group acquired 81-acres at Kramer Junction. Kramer Junction is located at the junction of U.S. Highway 395 and California Highway 58. Highway 395 can be taken from San Diego to Northern California, and Highway 58 leads to Barstow and Bakersfield, connecting easterly to the I-15 interchange to Las Vegas and westerly to the 14 and 5 Freeways.
According to the Victorville Daily Press, May 7, 2006, Yasheng proposes a $100 million global distribution center at Kramer Junction with an projected annual payroll of $2.67 million. Yasheng is a diverse conglomerate with products ranging from sodium sulfite to plastic industrial pipe to hops (it claims to supply the most hops to beer-makers in China), said Michael Larivee, General Manager of the Company’s United States operations.
The proposed project is planned in three phases. First, Yasheng plans to build a logistics center for its own use, including a dry storage palletized area as well as a controlled-temperature and bulk-staging area for repacking and labeling. The second phase will involve an expansion of the first phase, and the third phase will involve offering logistics services to other companies — both from the U.S. and China.
“The reason they chose the location at Kramer Junction is because it was close to the Southern California Logistics Airport.” The Chinese Company plans to use SCLA for imports and exports, providing a direct link between the High Desert and China. The 24-hour U.S. Customs office at SCLA would help companies bypass the congestion in Los Angeles and Ontario. However, before the Project can begin, it will require the construction of a rail spur to connect with the main tracks. As of July 2007, YaSheng and their Chinese Partners discussed the Project and land uses with Paul Herrera, Communications Coordinator for the San Bernardino County Economic Development Agency.
Why is this happening in the Inland Empire?
The answer is jobs and housing. During the 1990's Southern California suffered a strong recession and many jobs were lost to other states. However, there was no period when the Inland Empire's job creation stopped growing.
From 2000-2020, the Southern California Association of Governments forecasts that the Inland Empire will add 805,286 jobs. In this period, Los Angeles County is forecasted to grow by 918,741. However, the Inland Empire would add more jobs than the 747,238 expected in Orange, San Diego, Ventura and Imperial counties combined. In 2004, the Inland Empire added 49,092 jobs which equaled the gains in Orange & San Diego counties combined. Los Angeles added just 8,958.
According to the 2005 Husing Report, the Inland Empire has been Southern California's absolute leader in job creation for the past thirteen years, exceeding second place San Diego County by 151,500.
This job creation has been helped by the Region's educational systems. The Inland Empire is the home to 27 colleges and universities, which produce an educated and highly skilled labor force. This will help the future labor force of the Region, and should continue to attract the interests of large corporations in the United States and worldwide for many years to come.
This impressive labor force has contributed to Riverside and San Bernardino counties representing one-third of the Southern California housing market. When Data Quick started tracking the region 17 years ago, Riverside's and San Bernardino's slice of the regional homes sales activity was about half that size. In just the first two months of 2005, Inland Empire builders pulled building permits for 5,564 detached homes vs. 416 in Orange County, according to the Construction Industry Research Board.
Land values in the Southern portion of the Inland Empire have already become expensive. In November 2007, Collins Commercial Corporation announced the completion of a 62-acre land sale in excess of $40,000,000 in the Inland Empire city of Fontana. CBRE and Phelan partnered together to purchase and develop the property into a three-building, Class A industrial business park totaling in excess of 1.2 million square feet. In September 2008 the Inland Empire city of Murietta sold 9.8 acres of land situated between Madison Avenue and Interstate 15 behind, Wal Mart, for $5.2 Million. The City of Murrieta bought this land in 2004 for $3.85 million and made a $1.3 million dollar profit on the sale. The property is slated for the development of 2 hotels plus restaurants along with a possible car dealership and 53,000 square feet of commercial retail space as part of a 130 acre project called Cascada Del Sol.
On the other hand, the Inland Empire North offers reasonably priced properties in a dynamic, growing Region. Professional Land Corporation specializes in well located land parcels in the Inland Empire North in the Victor Valley, and in Barstow and surrounding communities. Many of these properties are zoned residential, industrial or commercial. Prime acreage parcels can be purchased with affordable long term financing.
