"Industrial transactions are the main driver of activity in the high desert," according to Soua Vang of San Bernardino County. During the pandemic, the boom in ecommerce has kept activity moving in the region with a total of 6.7 million square feet of industrial absorption, the second highest on record since 2010.

"At 6.7 million square feet, it was just shy of the all-time high of the 6.8 million square feet recorded in Q4 2018. The warehouse is now so much more than a location for storing product as information technology and automation are increasing its role in managing inventory," Vang, interim economic development director at San Bernardino County, tells GlobeSt.com.

There is a perfect storm of factors driving activity in the market. First and foremost is availability of land for new development, but labor and affordability have also played a key role in the market's growth. "Labor, location and affordability have increased interest in the High Desert," says Vang. "Housing costs are affordable. As young families look to invest out in the High Desert it creates a substantial workforce. There are 450,000 people in the region and approximately 60,000 or so people drive down the hill for work each day. It is estimated that about 35,000 of those are engaged in the warehouse and distribution industry. Most of them would rather work close to home, so there is a pent-up workforce supply in the immediate region. When a business locates to the High Desert, there is a line around the block of job applicants."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.