Moreno Valley’s Mike Lee Explains Inland Empire’s Driving Forces

By Dennis Kaiser

The Inland Empire has emerged as a hotbed of activity in SoCal, thanks in large part to its historically strong industrial base that has blossomed and pulled the region out of a funk. New opportunities abound across the region, and development is driving out to the furthest patches of land. Connect Media asked Mike Lee, City of Moreno Valley Economic Development Director, to put all the growth that’s occurring into perspective in our latest 3 CRE Q&A. Lee is one of the speakers at Connect Inland Empire coming up Tuesday, November 12. (information/registration link).

Q: What trends do you see driving the Inland Empire market today?
A: We continue to see strong industrial growth in the region. In Moreno Valley, we are leasing about five million square feet of industrial space annually. We have created over 20,000 new jobs in the past six years, and many of the jobs are a direct result of industrial development in either manufacturing, logistics or e-commerce. Fortune 500 and international companies such as Amazon, Procter & Gamble, Skechers USA, Harbor Freight Tools, Aldi Foods, Deckers Outdoor, Philips Electronics, Serta Simmons Mattress, Walgreens, United Natural Foods, ResMed, LeGrand, Medline, Fisher & Paykel, Solaris Paper and Karma Automotive have relocated to Moreno Valley in the past six years.

Q: What are some of the challenges and opportunities that you see in the market today?
A: To provide a skilled workforce that companies are seeking, we have partnered with our local community college (Moreno Valley College), UCR and Cal Baptist University. Under the leadership of the Mayor, the City started a program to provide stipends to Career Technical Education students to help them finish their degree and certification. The City continues to invest in providing incentives for companies to hire locally. With our Moreno Valley Electric Utility, large employers can obtain substantial discount for hiring locally. Also, we have new workforce programs such as ‘Hire a Veteran’ and ‘Hire a Grad’ to encourage companies to hire locally. The City also runs a business and employment resource center to connect local employers with local jobseekers.

Q: Can you share a few examples that reflect what is happening in the market?
A: New industrial building development between 50,000 to 200,000 square feet are now more common in Inland Empire East. We are also seeing many companies that want to co-locate near large manufacturing and e-commerce industrial centers. For example, Solaris Paper is one of the largest paper products suppliers for Aldi Foods, so Solaris leased 862,000 square feet at Prologis’ building near Aldi’s Western Regional Headquarters and Distribution Facility in Moreno Valley.

As a result of our strong job growth, we are seeing a resurgence in the commercial development market. New restaurants, retailers and hospitality locations are opening, as employees purchase homes, shop and dine, while executive business travelers seek lodging in our brand new hotels.

For comments, questions or concerns, please contact Dennis Kaiser