Land Values and Development in Riverside and San Bernardino Counties

Few regions in the United States have seen as much commercial development over the past few decades as the Inland Empire. Riverside and San Bernardino counties transformed agricultural fields, dairies and open land into one of the country's largest logistics hubs, along with new retail centers, offices and housing. For developers and investors evaluating commercial land Inland Empire opportunities, understanding what drives land values is essential. For a full overview of local market contacts, the region's brokerage offices are a helpful starting point.

This article explains the forces behind land values in the two counties, the types of development they support, and the issues buyers should research before acquiring a site.

A Region Shaped by Growth

Riverside County and its neighbor San Bernardino County together cover a vast area, from dense urban cities near the Los Angeles and Orange County lines to deserts and mountains farther east. Population growth, relatively affordable land and proximity to the ports of Los Angeles and Long Beach drew warehouse developers, homebuilders and retailers into the region.

As the most accessible land was developed, attention shifted to infill sites, older industrial properties ripe for redevelopment and areas farther from the urban core.

What Drives Commercial Land Inland Empire Values

Land values vary widely depending on several factors:

• Location and access. Sites near Interstates 10, 15 and 215 and State Route 60 generally command higher prices, especially for logistics.
• Zoning and entitlements. Land already entitled for industrial or commercial use is typically worth more than unentitled land, because it removes risk and time.
• Infrastructure. Availability of water, sewer, power and roads can make or break a project.
• Parcel size and shape. Large, rectangular parcels suit modern distribution buildings and are often in demand.
• Environmental conditions. Habitat protections, flood zones, soil contamination and topography can add cost or limit development.
• Market demand. Tenant demand for industrial, retail or residential space ultimately determines what developers can afford to pay.

Types of Development Across the Two Counties

Industrial development remains the most visible use, with distribution centers concentrated in areas such as the Ontario, Fontana, Rialto, Riverside and Moreno Valley corridors. Smaller multi-tenant industrial projects serve local businesses and contractors.

Retail development tends to follow rooftops, with grocery-anchored centers and service retail appearing as new neighborhoods grow. Medical office and healthcare facilities also expand to serve rising populations. In some cities, mixed-use projects industrial property management Orange County combine residential with ground-floor retail near transit or downtown districts.

Entitlement and Community Considerations

Entitlement has become a more significant part of land value in recent years. Some communities have raised concerns about truck traffic, air quality and the concentration of warehouses, leading to stricter standards in certain jurisdictions. These can include setbacks from homes, landscaping requirements, truck routing rules and design standards.

Developers who engage early with local planning staff and community stakeholders often have smoother approval processes. Understanding each city's policies is critical, because rules can differ significantly from one jurisdiction to the next.

Due Diligence Steps for Land Buyers

1. Review the general plan, zoning and any specific plans that apply to the parcel.
2. Commission surveys, title reviews and environmental assessments.
3. Confirm utility availability and estimate costs for extensions or upgrades.
4. Evaluate traffic studies, road improvement requirements and impact fees.
5. Assess biological and cultural resource constraints that may affect site planning.
6. Model the finished product's likely rents or sale values to test feasibility.

Land deals often include contingency periods for entitlement work, so structuring the purchase agreement carefully can reduce risk for buyers.

Market Cycles and Timing

Land is often the most cyclical part of commercial real estate. When demand for finished buildings is strong and financing is available, competition for land intensifies. When rents soften or borrowing becomes more expensive, land buyers become more cautious and pricing may adjust. Investors with a long-term view sometimes acquire land during slower periods to position for future growth. DAUM Commercial Real Estate Services, which operates an Inland Empire office as part of its Southern California and Arizona network, works with developers and investors navigating these cycles.

Frequently Asked Questions

Why is entitled land more valuable?

Entitled land has already secured key approvals, which reduces the time, cost and uncertainty a developer faces before construction can begin.

Is the Inland Empire still a good place for industrial development?

The region remains important for logistics, but stricter local standards and limited large parcels mean projects require careful site selection and planning.

How long does entitlement typically take?

It depends on the jurisdiction, project size and complexity. Simple projects may move quickly, while large or controversial projects can take much longer.

Land in Riverside and San Bernardino counties continues to be shaped by growth, infrastructure and policy. Buyers who understand these forces and complete thorough due diligence are best positioned to turn raw land into successful commercial projects.