Earlier this month, our office was pleased to be the presenting sponsor for the annual High Desert Commercial Real Estate Symposium at Victor Valley College.
This highly anticipated annual event featured guest speakers from Coldwell Banker Commercial, BNSF and Brightline West. Guests were also treated to economic updates from High Desert city managers, our San Bernardino County Economic Development Department and UCR Forecasting.
Some highlights:
- The High Desert made $1.1 billion in commercial and land sales in 2022.
- Industrial development continues in the High Desert, with increased land sales that accounted for 49.6 percent of all transactions last year.
- Retail development will continue, but at a slower pace. In 2022, retail development focused on in-fill locations in existing commercial buildings and lots.
- The office sector is stable, however a slowing economy could impact this.
- Investment sales are slowing due to low inventory and CAP Rates. CAP rates will increase as a result of leverage cost.
- The High Desert’s multi-family housing market is good, with a strong affordability index and long-term outlook for slow and steady growth. However, housing demand is outpacing supply and inventory remains tight, with a 2.2-5.2 percent vacancy rate.
- In Dec. 2022, the median price for a High Desert home was $390,000. The most affordable housing was found in Jess Ranch/Dell Web at a $260,000 average. The most expensive was found in Wrightwood with an average of $496,850.
- Rental rates will remain stable due to low inventory. Currently, there are 1,565 apartment units in the permitting or construction phase throughout the High Desert.
Thank you to all of the guest speakers who presented at this year’s symposium. The future looks bright in the First District!