Dedeaux Properties Jumps on Dearth of Inland Empire Industrial

Tejon Ranch Company and Dedeaux Properties are betting on Southern California industrial tenants looking north instead of east.

The joint venture is preparing to break ground on a 510,385-square-foot Class A warehouse at the Tejon Ranch Commerce Center at 5665 Dennis McCarthy Drive in Lebec, Dedeaux said in a press release.

The facility will rise on a nearly 25-acre site and is designed for single or multi-tenant use, with features geared toward modern logistics users including 36-foot clear heights, 100 dock-high doors and 185-foot truck courts. Plans also call for 4,000 square feet of offices. Tejon Ranch Commerce Center spans 1,450 acres in the Castac Valley, according to Tejon Ranch’s website.

Tejon Ranch Commerce Center’s upcoming expansion comes as the existing 7 million square feet of industrial space is fully leased, with tenants including IKEA, Nestlé, L’Oréal, Caterpillar, Dollar General, Camping World and Famous Footwear, as well as modular home manufacturer Plant Prefab. The complex currently supports an employment base of 5,000 people.

Developers are proceeding with the next phase of the 20-million-square-foot master-planned development, which still has about 11 million square feet entitled but unbuilt. The industrial vacancy rate in the Inland Empire, long the industrial hub of Greater Los Angeles, increased to 8.5 percent last quarter, while net absorption was negative as 3.4 million more square feet were vacated than leased, according to CBRE’s first quarter report. Industrial vacancy in the I.E. hit a 15-year high last summer, though some industry observers are “bullish” on a bounceback, The Real Deal reported earlier this spring.

Tejon Ranch and Dedeaux view Tejon Ranch Commerce Center as a viable alternative for companies willing to look north in Kern County rather than east in the I.E. “Knowing when to move” has been a key part of the partnership, Tejon Ranch CEO Matt Walker said. “We’re building into a market where industrial supply across Southern California is limited, and leasing demand has been accelerating,” noting the new warehouse is “well-timed to meet the market.”

The forthcoming warehouse will be Dedeaux’s second industrial project within the Tejon Ranch Commerce Center. In 2024, the logistics-focused firm sold a 233,000-square-foot warehouse and distribution facility months after completion to a national clothing and textile distributor, which was moving its operations from the Inland Empire to Kern County.

— Chris Malone Méndez