Why are brand-new, modern industrial warehouses across Southern California sitting completely dark and vacant? In this episode, Newport Utility Consulting President John Gaglio joins us to pull back the curtain on the massive power crisis facing logistics real estate. From multi-megawatt data centers and EV truck charging mandates to the intricate rules of dealing with Southern California Edison, John explains why electricity has officially overtaken zoning as the ultimate gatekeeper of commercial real estate.
Whether you are an institutional developer sourcing land, a third-party logistics (3PL) provider looking to automate, or a broker trying to avoid a multi-million dollar mistake—this masterclass outlines exactly how to navigate today's grid constraints.
Episode Timestamps
00:00 Cold Open & Introduction – Why power is the ultimate gatekeeper.
01:23 The Reality of SoCal's Grid – Why the power is there, but not everywhere.
02:24 Going Off-Site for Infrastructure – The reality of extending lines for capacity.
04:23 What a Utility Consultant Does – Bridging the gap between developers and public utilities.
06:00 The EV Truck Charging Power Trap – Why a 2-acre EV site draws more power than a massive warehouse.
08:18 Target Market & Specialty – Focusing on Class A industrial tilt-ups in SoCal Edison territory.
09:47 The Water Analogy – An elementary explanation of how voltage moves and steps down.
13:08 Connected Load vs. Demand Load – The critical distinction that trips up the broker community.
18:24 How Brokers Can Find Real Power Data – Using utility bills and peak demand to find building options.
22:00 What's Driving the Power Surge? – Automation, robotics, cold storage, and defense manufacturing.
25:54 Data Centers in the Inland Empire? – Infrastructure constraints and 3-to-5-year substation lead times.
27:00 Mid-Show Spotlight – Repositioning vacant industrial assets in the Inland Empire.
28:49 Why Buildings Sit "Waiting on Power" – Dispelling the myth and looking at construction sequence.
33:04 The "Magic Three" Field Releases – Exactly what is required to get on Edison’s schedule.
36:46 The 9-Mile Amazon Project (CAZ5) – Bringing 15 megawatts to a 2.5M SF facility in Hesperia.
40:54 Where Consultants Fit on the Org Chart – Why contracting directly with developers avoids conflicts of interest.
45:52 3 Key Takeaways for Industrial Brokers – Playing nice in the sandbox and understanding your asset's limits.
Connect with John Gaglio:
LinkedIn: / john-gaglio-569b46236
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🏢 ABOUT YOUR HOST & BROKERAGE SERVICES:
Shy Assar is an industrial real estate broker specializing in the acquisition, disposition, leasing, and strategic underwriting of commercial buildings, warehouse spaces, and industrial land across Southern California's Inland Empire market.
Looking to buy, lease, or list an industrial asset in the Inland Empire? Contact Shy directly to review your property requirements or receive a custom market valuation report.
📩 Contact Shy Assar:
Brokerage: Voit Real Estate Services
Email: sassar@voitco.com
Voit Corporate Website: https://www.voitco.com/