In this episode of Adding Value, we dive deep into industrial real estate Inland Empire trends with Jackson Smith, Partner at Newcastle Partners. With over two decades of experience developing tens of millions of square feet across Southern California, Jackson shares critical lessons on land acquisition, the shifting challenges of entitlements, and how to navigate today's complex market. Jackson discusses the evolution of the "merchant builder" model, the impact of new legislation like AB98, and why the "shovel-ready" strategy is more vital than ever for securing capital. Whether you are a broker, investor, or developer, this conversation offers a masterclass in overcoming political opposition and finding opportunities in the Inland Empire's high-barrier market.
🚀 Key Topics Covered: Entitlement Risk: Why closing on unentitled land is becoming a thing of the past. Market Shifts: Comparing the "easy" days of early 2000s development to today's 3-4 year approval timelines. AB98 & Opposition: How to navigate "sensitive receptors" and community pushback in the Inland Empire. Future Outlook: Jackson’s predictions for supply constraints and the "structural demand" of Southern California logistics. Broker Advice: Tips for younger professionals on building resilience and adding value to land sellers.
CHAPTERS: [00:00] - Intro: Jackson Smith & Newcastle Partners
[01:54] - Boots on the Ground: Early Days in Chino & Schaefer
[04:08] - Career Path: From Property Management to Development [09:35] - How Industrial Real Estate Inland Empire Has Changed
[11:30] - The Reality of Entitlements: 12 Months vs. 4 Years
[16:48] - Why Capital Won't Close on Unentitled Land Today
[20:41] - Navigating AB98 & Sensitive Receptors
[23:04] - Political Risk: When City Councils Flip Overnight
[30:19] - Creative Deal Structures for Land Sellers
[38:40] - New Projects: Hesperia & Perris Development
[43:43] - Is Tenant Demand Structurally Lower? (The Bull Case)
[55:43] - Advice for Industrial Real Estate Brokers
#IndustrialRealEstate #InlandEmpire #CommercialRealEstate #RealEstateDevelopment #NewcastlePartners #LogisticsRealEstate #AB98 #IndustrialDevelopment #CRE
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