overing more than 3,000 square miles, the Antelope Valley represents one of the final frontiers in the Greater Los Angeles region in terms of plentiful, affordable land for commercial and industrial uses. The valley’s sheer size cannot be overstated, spanning an area larger than Delaware and Rhode Island. It includes five incorporated cities and numerous unincorporated communities. Once dependent almost entirely on the aerospace industry, the Antelope Valley has made significant progress in diversifying its industrial base. Although aerospace is still a vitally important component of local industry, numerous manufacturing and warehousing companies, as well as others, have made the valley their home in recent years. Combined with a fast-growing retail market, business and industry are transforming the Antelope Valley into a strong, independent and influential economic region.
Sales have soared in the Greater Antelope Valley, whose total population now tops 460,000. About $4.2 billion in sales took place here in 2006, a 5.3 percent increase over the previous year, according to statistics compiled by the Greater Antelope Valley Economic Alliance. Retail sales made an even greater jump over the previous two-year period, growing at an impressive 30.6 percent. The cost of doing business, meanwhile, remains low to moderate, ensuring the longevity and profitability of the market and sustained economic growth. The valley rates favorably in the respected Kosmont Cost of Doing Business Study, which compares the cost of doing business in a wide range of cities throughout the country with populations of more than 100,000. The study compares a number of costs imposed by local government
 |
||
|
such as business taxes, gross receipt taxes, utility taxes, property taxes, sales tax, state income taxes, various fees and other costs. Commercial and residential development has occurred at record levels in both Palmdale and Lancaster in recent years, according to the research firm California Economic Forecast. And industrial expansion continues in Lancaster and Palmdale. Retail expansion valley-wide also is strong, and vacancy rates for retail space have dropped to less than 3 percent. Population growth has accelerated, and demand remains strong for both new and existing homes. Home sales have fallen dramatically, with prices falling as price appreciation decelerates. An unprecedented decline in home sales is characterizing many regions of California, and earnings have fallen at many home-building companies. Real estate market forecasts are offered up by many, but the fact is that nobody can predict with any accuracy what its condition will be in either the short or long term. We’ll all have to wait and see. Nevertheless, the news isn’t all that dire for the Antelope Valley, a region that continues to grow and likely will continue to do so for the foreseeable future. The region has experienced some important milestones in recent years. In Lancaster, a new $3.5 million University Center opened at the old fairgrounds, offering local students advanced degree programs from California State University Bakersfield and California State University Fresno. Countrywide Home Loans occupied the second phase of its 13-acre loan-processing center, a new Lowe’s Home Improvement Center was built, and Regent Aerospace developed an 80,000-square-foot manufacturing facility. The Antelope Valley Fair & Alfalfa Festival now has a new fairgrounds location and facilities. As Lancaster’s population increases, new employers are moving in, taking advantage of a growing workforce, low land prices, an attractive location and a business-friendly environment. Indeed, the city received the Eddy Award from the Los Angeles County Economic Development Corp. for being the most business-friendly of Los Angeles County’s 88 cities in 2007. Much of the city’s recent development has occurred in the Lancaster Business Park, which is home to more than 100 employers and more than 4,100 employees. Rapid expansion also is under way in the Fox Field Industrial Corridor and the North Valley Industrial Center. A major component of Lancaster’s redevelopment is the North Downtown Transit Village project, a so-called urban village that is helping to transform an aging area into a vibrant center of community activity. The focus of the project is more than 100 acres bounded by Avenue I, Lancaster Boulevard, the railroad tracks just east of Sierra Highway and 10th Street West. New and revitalized parks, schools, housing, community services and commerce are replacing old structures that had become troublesome and sometimes unsafe. Palmdale also has experienced significant progress. Delta Scientific Corp. opened its second location in the Fairway Business Park, a multi-million-dollar sheriff’s station opened, and a $10-million transportation center was built. The city’s DryTown Water Park & Mining Co. opened for business, and a new outdoor amphitheater and pool were built at Marie Kerr Park. Throughout the city, industrial, commercial and office space totaling more than 2 million square feet completed construction or was approved for construction. Palmdale’s Foreign Trade Zone expanded to include more than 90 acres at Mojave Airport, and the first phase of downtown revitalization was completed. The South Valley WorkSource Center opened. FedEx opened a 55,000-square-foot distribution center in the Fairway Business Park, and a new Wal-Mart Super Center opened. A multi-million-dollar renovation and expansion project occurred at the Antelope Valley Mall, and home sales began in the long-awaited, master-planned Anaverde housing development in the southwest valley. Construction was under way on a number of projects in the Palmdale Trade & Commerce Center, among them a 69,000-square-foot office condominium project, an 18,098-square-foot professional office building, and seven professional medical office buildings totaling 52,072 square feet. Construction was visibly under way on Palmdale’s long-awaited regional hospital, and nearly 500,000 square feet of industrial and commercial buildings were in various stages of construction in the Fairway Business Park. And, the former Palmdale Courthouse officially became the Palmdale Institute of Technology, home to the AERO Institute. With the sprawl of Los Angeles quickly reaching capacity, the Antelope Valley is an attractive place for commercial developers seeking new vistas for their clients – retailers, industrialists and home builders. Both Lancaster and Palmdale have pro-active plans in place to accommodate economic development and future growth. Local land and industrial brokers have been cooperating successfully in efforts to attract large companies and jobs to the valley. Land prices are certainly more attractive than other regions within the county. Improved land in the Antelope Valley is usually half the cost or less than comparable land in the Santa Clarita Valley. It’s an important factor in the decision of many Santa Clarita Valley companies that relocate to the Antelope Valley. An indicator of the Antelope Valley’s growth in recent years is the reduced inventory of commercial and retail space. The vacancy rate for industrial and commercial space has dropped substantially over the course of the past decade.
Industrial Market Businesses are growing or relocating to the Antelope Valley at a rate greater than new space is being made available, according to the Greater Antelope Valley Economic Alliance. The overall vacancy rate has stood between 1 and 2 percent for the past several years. The total permit value for new commercial and industrial construction in Lancaster and Palmdale has remained relatively constant since 2000. Lancaster had $225 million of investment, while Palmdale had $235 million. In 2006, Lancaster permitted an estimated $45 million worth of new commercial and industrial buildings, while Palmdale permitted an estimated $30 million. The Fairway Business Park in Palmdale has experienced significant growth, and the opening of a 55,000-square-foot FedEx distribution center. Another 390,000 square feet of light industrial and commercial space is planned. Nearly 2 million square feet of approved commercial and industrial projects exist in Palmdale. The tight industrial market is well below the 5 percent average for the rest of Los Angeles County, as reported by the Los Angeles County Economic Development Corp. And it is well below the 10 percent rate that real estate experts say is considered necessary for a balanced market to sustain the growth of existing businesses while attracting new businesses. Industrial building lots of all shapes, sizes and locations have sold quickly. And the demand for inexpensive industrial land is growing faster than local communities can make improvements wanted by industrial shoppers. With Los Angeles needing 11 million square feet of industrial space annually, the region has more than enough land to meet this shortfall. Lancaster has at least 9,000 acres of industrial land within its borders, all within the Antelope Valley Enterprise Zone, giving businesses tax incentives for relocation. Industrial & Business Centers Lancaster
Palmdale
California City
Mojave
Ridgecrest
Inyokern
Tehachapi
Airports Gen. William J. Fox Airfield – Improvements to Gen. William J. Fox Airfield located on West Avenue G between 30th and 60th streets west have given the airfield a 7,200-foot runway, which is 200 feet longer than the main runway at Bob Hope (Burbank) Airport. Mojave Airport – Mojave Airport in the East Kern community of Mojave provides a unique gem for the region’s economy. Named the country’s first official “spaceport” by the federal government, the airport was the location from which Scaled Composities’ “SpaceShipOne” made history in 2004 by being the first civilian craft to make a flight into space. The general-aviation airport is home to 130 tenants as varied as the National Test Pilot School (NTPS), BAE Systems, Scaled Composites, General Electric, Fiberset, Teledyne Ryan, AVTEL Services, the Santa Monica Air Museum of Flying, Flight Research, and many more. Scaled Composites also produced the famous Voyager, which flew around the world without refueling in 1986. Palmdale Regional Airport – Palmdale Regional Airport is owned and operated by Los Angeles World Airports (LAWA) under a joint-use agreement with the U.S. Air Force. The airport is located on a 61-acre site on the property of Air Force Plant 42. The terminal at 41000 North St. East first opened in 1971. Since then, LAWA has acquired an additional 17,750 acres of adjacent property for the airport’s eventual development into a large commercial airport. United Airlines is the only carrier operating here, providing daily flights to and from San Francisco. Two 12,000-foot runways can accommodate any commercial passenger or cargo aircraft. The airport is poised to accommodate increased future air travel if and when Los Angeles International Airport reaches capacity Air Force Plant 42 – Aircraft manufacturers including Lockheed Martin Aeronautics Co., The Boeing Co.; Northrop Grumman; BAE Systems; SR Technics, a new aircraft maintenance company; and the U.S. Federal Aviation Administration Traffic Control Center are located here. Located on 5,800 acres across 9 square miles, Plant 42 can handle nearly 50 commercial flights a day. California City Airport – This airport was established by Great Western Cities in 1964 as a recreational attraction for people moving to the High Desert. It reverted to California City the following year and has since become the home of about 20 small businesses serving aviation, recreation and commercial needs. Retail Development Diversification in the economy is helping attract more big retailers to the valley. In response to the expansion, commercial developers are planning more and more projects, located from one end of the valley to the other. In California City, for example, Ellison Plaza developer Michael Ellison is hard at work on his 16-acre development at California City Boulevard and California City Boulevard South. A 103-room Microtel Inns & Suites has opened here, and plans call for the center to include retail stores, entertainment venues and restaurants. For information, call 858/541-2230. Valley Central Way – Construction of the new Wal-Mart Supercenter began in August 2006 at this shopping center in Lancaster. The developer is overseeing the remodeling of the old Wal-Mart building, as well as construction of 15,000 square feet of new space. Front Row Center – Located immediately south of Clear Channel Stadium and west of Highway 14, this project consists of 250,000 square feet of retail space and at least two hotels: an-85 room Hampton Inn and a 92-room Homewood Suites. Lancaster Spectrum – Lancaster Spectrum, located at 20th Street West and Avenue J-8, north of the Clocktower Plaza, will add 125,000 square feet of retail space and a 52,000-square-foot, 102-room hotel. Lane Ranch – Located on 71 acres along 60th Street West, between avenues L and L-8, this project calls for 744,000 square feet of space, about half of which will be major anchor stores. A 174,000-square-foot Target store is planned. 20th and J – Wood Investments is developing a 176,000-square-foot retail center at the corner of 20th Street East and Avenue J. Plans call for a 106,000-square-foot Home Depot. The Promenade at Amargosa Creek – This 545,000-square-foot project is being developed on 62 acres at Avenue L and 10th Street West, southeast of the Lancaster Auto Mall. Lancaster Power Center – Located southwest of Lancaster Boulevard adjacent to the Market Place, this 76-acre retail center has Wal-Mart as its anchor, as well as other major discount retailers Michaels, Marshall’s, Food 4 Less, Payless Shoes, Mode Five, Staples office supplies and PetSmart. Restaurants include Black Angus, Chuck E. Cheese, Subway, Carl’s Jr. and H. Salt Fish & Chips. The Movies 12 theaters and other small stores complete this retail area. Downtown development on Lancaster Boulevard continues. The 740-seat Lancaster Performing Arts Center, a regional Sheriff’s Station, a county library (the largest in the county library system), a Metrolink station, and the Aerospace Walk of Honor have combined to rejuvenate and energize the downtown commercial district. Lancaster Market Place – Located off Highway 14 at the Avenue I exit, the 24-acre Lancaster Market Place has undergone extensive refurbishment and added new stores. Lancaster JetHawks/Clear Channel Stadium – In less than six months, vacant land was transformed into the Lancaster Municipal Stadium, also known as the “Hangar” and most recently renamed the Clear Channel Stadium. It is the home of the JetHawks, a Boston Red Sox affiliate. Cinemark 22, a state-of-the-art 22-screen movie theater complex, opened in 1999 across from the stadium. Antelope Valley Mall – The mall, which recently underwent an expansion, opened in Palmdale in 1990 with four anchors: Sears, JCPenney, Harris and Gottschalks. In 1999 the mall expanded from 980,000 square feet to 1.2 million square feet when Dillard’s department store opened the first two-story store in the valley. The Dillard’s store is the second California store for the upscale department chain. Since then, Gottschalks and Harris have merged, and Miller’s Outpost, Texas Cattle Co., Grand Salon & Spa, Select Comfort, Daniel’s Jewelers, and Old Navy have joined the other 125 stores in the mall. Restaurants include Olive Garden, Red Lobster, Chili’s and Outback Steakhouse. Located inside the mall are several specialty restaurants, along with the Oasis Food Court. The mall continues to grow as evidenced by the 50,000-square-foot addition of a 24-Hour Fitness, The Men’s Wearhouse, Shaw Carpets, L.A. Cellular and Kinko’s. A new stadium-style Cinemark movie complex recently opened here as well. Located at 1233 Rancho Vista Blvd. (Avenue P), the mall conducts events throughout the year. For more information, call the Customer Service Center, 661/266-9150. The Marketplace at Palmdale – Major construction at The Marketplace at Palmdale on 10th Street West just south of Rancho Vista Boulevard (Avenue P) has been under way for some time. Lowe’s Home Improvement Warehouse, Barnes & Noble book store, Staples, Sport Chalet and Linens ‘n Things have opened stores, joining Target, Best Buy and several smaller retailers. Starbucks is planning an 1,800-square-foot restaurant complete with a drive-through at Trade Center Drive and Rancho Vista Boulevard. Palmdale Promenade – Wal-Mart and Home Depot act as anchors for the Palmdale Promenade shopping center, which includes a number of retailers and HomeTown Buffet restaurant. Two new Marriott hotels have joined the Palmdale Promenade, near the Rancho Vista Boulevard exit at the Antelope Valley Freeway. The 90-unit 64,818-square-foot Residence Inn by Marriott offers suites for longer stays, and the 49,493-square-foot, 90-unit Courtyard by Marriott is designed for overnight travelers. The Place at 47th Street – This new shopping center saw the opening of Wal-Mart and Big 5 sporting goods. Auto Centers & Malls There are two major auto centers in the Antelope Valley that serve as one-stop-shopping centers for a selection of popular automobiles, vans and trucks: Lancaster Auto Mall and Palmdale Auto Center. Several pre-owned auto outlets are located close to the auto malls, making it easy for shoppers to find the vehicle that meets their needs. Lancaster Auto Mall — Situated just east of the AV Freeway on 10th Street West, between avenues L and K, the Lancaster Auto Mall continues to expand with a variety of dealerships. New car dealerships at the mall include Antelope Valley Ford; H.W. Hunter Dodge, Chrysler, Plymouth, Daewoo; Lancaster Honda Pioneer; Lancaster Jeep Mazda, Isuzu, Suzuki, Subaru; Sierra Toyota; Lancaster Mitsubishi; and Shuttle Lincoln Mercury. Antelope Valley Auto Center — The Palmdale Auto Center sold its first car in May 1991. Dealerships include Antelope Valley Nissan; Volkswagen; Kia; Holiday Buick-Oldsmobile; Daihatsu; Rally Chevrolet; Geo; Rally Pontiac; Cadillac; GMC Truck; Hyundai; Robertson’s Palmdale Honda and Saturn of the Antelope Valley. The Palmdale Auto Center is located off the Antelope Valley Freeway. Exit at Palmdale Boulevard, travel west to Fifth Street West, then turn right into the Palmdale Auto Center. A recent addition is a Kawasaki dealership.
Filming/Tourism Although filmmakers have been hitting high desert locations since celluloid productions began flickering in Hollywood, it was not until the 1990s that the cities of Palmdale and Lancaster established specialized film offices to lure the movie industry here. The Antelope Valley Film Office has helped attract hundreds of shoots, generating several million dollars in economic impact for the area. Projects include films, such as “Terminal” and the third installment of “Pirates of the Caribbean,” as well as numerous commercials and still-photography shoots.
The high desert provides a versatile back lot for Hollywood because various locations around the area can stand in for other regions nationally and worldwide: New Mexico, Illinois, Virginia, Vermont and Australia. Early movies made here include Cecil B. DeMille’s “The Ten Commandments” in 1923 and Howard Hughes’ “Hell’s Angels” in 1930. Housing Market Dozens of new-home communities continue to sprout in the Antelope Valley. They include:
Master-Planned Communities Anaverde – Home sales have begun in Anaverde, the newest master-planned community in the Antelope Valley. Covering nearly 2,000 acres, Anaverde rises from the valley floor as one of North Los Angeles County’s most important master-planned developments. Punctuated by community parks, bike paths and open spaces, Anaverde’s master plan provides for a series of neighborhoods, each with its own distinctive character and personality. Long-term plans include more than 150 acres of parks, three new schools, a world-class sports facility, a “Town Center” with dining and shopping, a fire station, a public art program and an elementary school. Rancho Vista – When completed, Rancho Vista, a master-planned community located along Rancho Vista Boulevard on the west side of Palmdale, will be home to about 8,000 families on 1,307 acres. The new Rancho Vista Golf Course and Cascades restaurant are the focal point of the community. Ritter Ranch – The much-delayed but long-anticipated Ritter Ranch development will be composed of 7,200 homes when fully built. Located on 10,625 acres west of Palmdale, the project’s first phase of 553 single-family homes went on sale in 2007. Current plans include 7,628 acres of natural open space, an 18-hole golf course, 63 acres of commercial development, an equestrian center and six schools. |
||
