Commerce Center Lands Permits for 8 Million Square Feet

The Antelope Valley Commerce Center has landed entitlements to build 8 million square feet of warehouses in Palmdale.

Combined with previous entitlements for 1.4 million square feet, the development now has a master-planned project in two parts, called AVCC East and AVCC West, with 9.4 million square feet on 510 acres, the Los Angeles Times reported. Total buildout will cost in excess of $1.2 billion.

The development can accommodate single buildings as large as 2 million square feet, according to developer Covington Group. The industrial park is located at the corner of Sierra Highway and Avenue M.

AVCC benefits from ongoing infrastructure upgrades along State Route 14, which enhance regional connectivity and streamline goods movement throughout the Los Angeles Basin and beyond. These improvements are critical to supporting the area’s transformation into a premier logistics hub, enabling faster access to major freeways, ports and distribution corridors.

The industrial park will benefit from nearby large-scale developments, most notably the 1-million‑square‑foot Trader Joe’s food assembly and distribution facility now under construction at Avenue M and 10th Street. The 104-acre site will consist of three buildings, including a massive 211,000 square feet freezer storage facility.

The planned buildings at Antelope Valley Commerce Center will feature dock-high and grade-level loading, up to 42-foot clear heights and build-to-suit configurations, according to Covington.

Competitors for large warehouse tenants in the larger North Los Angeles County regional market include Tejon Ranch Company’s spread along the 5 Freeway and Oltmans Construction’s The Center at Needham Ranch on 135 acres in Santa Clarita. Covington Group, run by CEO Kenneth Sheer, also owns the 70-acre Saugus Station Industrial Center in Santa Clarita.

Vacancy at industrial properties in Southern California approached zero during the pandemic, but later climbed as supply chains reorganized and consumer retail options widened. However, experts feel optimistic about a new cycle of industrial expansion in the region.

– Joel Russell