San Bernardino County Is Becoming an Infill Market

San Bernardino County is growing rapidly. The county has a healthy development pipeline across asset classes, population growth and job growth. Retail development is the latest phase in the market’s growth, and it is serving to support San Bernardino’s transition to an infill market. San Bernardino has the strongest retail growth in California and outpaces the state as a whole, and currently, there are several notable retail developments under construction.

It isn’t surprising that San Bernardino is growing. The market’s size and location has made it a perfect candidate for real estate development. “San Bernardino County is the largest county in the United States. Not only is it large but it is diverse,” Reg Javier, deputy executive officer of workforce and economic development at San Bernardino County, tells GlobeSt.com. We have well-established cities such as Ontario, Chino Hills and Redlands and communities that are young and still building especially in the High Desert which creates a broad opportunity for new construction, infill and redevelopment.”

New retailers have expanded or arrived in San Bernardino, but retail development has been integral in facilitating retail growth. Javier highlights three current constructions in the high dessert area that are changing the market dynamics. “Construction recently started for a new ground-up retail center in the high desert region, Adelanto Towne Center by Lewis Retail Centers, which will represent opportunity for 63,400 square feet of new retailers. Majestic Realty just kicked off the multifamily component of Mountain Grove, a 67-acre retail development contiguous to its highly successful 520,000-square-foot Citrus Plaza shopping center in Redlands. At full build-out, Mountain Grove will include more than 450,000-square-feet of retail, entertainment and restaurant tenants.

In addition to those two developments, there is an 8,400-square-foot retail project in Montclair Place that is also making a difference in the market. “In Montclair, Lazy Dog will build an 8,400-square foot freestanding building on the eastern outskirts of Montclair Place, an enclosed, two-story mall on the 10 Freeway, which has experienced tremendous redevelopment,” he says. “Montclair Place has been successfully repositioned and will be home to a new AMC Dine-In Theatre with 12 screens and meal service and live performance venue The Canyon Montclair.”

In the fourth quarter 2018, retail vacancy hit 6.6%, the lowest since the recession, and tenants absorbed more than 97,600 square feet of space. These numbers and demand from retailers will continue to trigger more retail development in the market.