AB 98 is here, and it is fundamentally changing the rules for industrial real estate in California. In this episode, I sit down with Jonathan (John) Shardlow, a land use expert from Allen Matkins, to discuss the massive implications of AB 98 and the "cleanup" legislation, SB 415. If you are a developer, investor, or broker in the Inland Empire, you need to understand how these new "Sensitive Receptor" setbacks and truck routing mandates will affect your current and future projects.
[00:00] - Introduction to Adding Value Shy Assar introduces the show’s focus on industrial real estate and current market trends. [01:04] - Guest Introduction: John Shardlow An introduction to John Shardlow, a specialist in complex entitlement, zoning, and environmental matters at Alan Matkins. [02:11] - Background on Alan Matkins and the Inland Empire Market John discusses his firm's focus on real estate and his extensive experience with industrial projects in the Inland Empire. [06:25] - The Role of a Land Use Attorney A deep dive into what a land use attorney does, specifically their role as development managers and experts in the California Environmental Quality Act (CEQA). [10:42] - Overview of AB 98 and SB 415 John explains the origins of AB 98, its initial ambiguities, and how the recently signed SB 415 clarified many of those issues. [12:49] - Objectives of AB 98: Buffers and "Sensitive Receptors" A discussion on how the bill creates mandatory buffers between industrial buildings and "sensitive receptors" like homes, schools, and hospitals [14:27]. [18:31] - The 2:1 Housing Replacement Rule Explaining the controversial requirement that developers must replace demolished housing at a 2:1 ratio and the practical challenges of this mandate. [21:31] - What Triggers AB 98? The bill specifically targets "logistics use" [22:07]. John clarifies how it applies to new developments versus expansions of existing facilities [24:24]. [27:16] - Market Impact and the Development Pipeline How AB 98 has slowed down the development pipeline and the unintended consequences of forcing trucks to drive further distances [30:10]. [33:24] - Amazon and Last-Mile Facilities Discussing whether high-volume van delivery centers (last-mile) are subject to the same heavy-duty truck standards as large-scale warehouses. [35:38] - City Conflicts: Perris vs. Menifee John details the ongoing legal and zoning battles between neighboring jurisdictions in the Inland Empire. [39:00] - Advice for Brokers and Landowners Strategic advice on how to navigate the "land game" in this new regulatory environment and potential shifts toward smaller building models [40:05]. [43:19] - Closing and Contact Information Final thoughts and how to reach out to John Shardlow for further legal guidance. 🚨 AB 98 SENSITIVE RECEPTORS LIST: The bill defines these 6 areas as "Sensitive Receptors" that trigger strict development setbacks: Residences (Single family & multi-family) Schools (Preschool through 12th grade) Daycare Facilities Public Parks & Playgrounds Nursing Homes & Convalescent Hospitals Hospitals About Our Guest: John Shardlow is a partner at Allen Matkins and a leading legal voice in California land use, CEQA, and real estate development. Connect with me: 📍 Industrial Real Estate Broker | Inland Empire 📧 Sassar@voitco.com #AB98 #SB415 #InlandEmpire #IndustrialRealEstate #WarehouseDevelopment #CaliforniaRealEstate #AllenMatkins #CommercialRealEstate #CEQA #LogisticsRealEstate