HESPERIA, Calif. — Modway Inc., a major distributor of living, dining, bedroom, outdoor, lighting and office furniture, plans to establish new distribution operations at Interstate 15 and U.S. Route 395 in Hesperia. Modway will sustain 200 jobs in this new location, which will become operational by fall 2021.
“Our region’s strong transportation infrastructure and skilled workforce continue to support business growth. It’s a great sign for our region to see companies such as Modway thrive and leverage our strong regional market fundamentals, especially in the High Desert, to reach their customers across the U.S.,” said Curt Hagman, Chairman of the San Bernardino County Board of Supervisors.
The new 1 million-square-foot build-to-suit industrial building is located on a 60-acre parcel that is part of the 200-acre Hesperia Commerce Center One project. Hesperia Commerce Center One will be comprised of three class-A logistics buildings, each of which will provide at least 1 million square feet of space.
“On behalf of the residents of the First District, I want to welcome Modway, Inc. and their team to the High Desert,” said First District Supervisor Robert Lovingood. “With its freeway, rail and aviation links and affordable land, the High Desert is a great location for logistics firms. We thank Modway, Inc. for investing in our community.”
CBRE sold the 60-acre Hesperia land parcel to Philadelphia-based real estate investment firm Exeter. Walt Arrington,Darla Longo, Barbara Perrier and Jeff Fritch of CBRE represented the seller, Covington Group, a Dallas-based real estate development firm and its partner M.F. DiScala & Company. Andrew Lara and Gus Andros of Daum Commercial represented Modway in the lease transaction with Exeter.
“We are excited to expand to Hesperia and play a role in helping to create local jobs,” said Modway COO Moshe Melamed. “We look forward to developing a strong partnership with the City of Hesperia and County of San Bernardino,” added Modway CEO Tuvya Greisman.
“This project is a major sign of growth for the City of Hesperia and San Bernardino County,” said Arrington. “Given the strong demand for large industrial land sites throughout the Inland Empire, the Hesperia Commerce Center with its unique location provides a complete logistics solution which includes excellent highway access, an abundant labor pool, affordable housing, and much lower occupancy costs than surrounding markets.”
Modway operates two U.S. distribution sites, one on the East Coast and one on the West Coast, which is located in 310,000-square-feet of space in Fontana. The relocation and expansion to Hesperia triples Modway’s West Coast distribution operations helping them to further scale their business.
“The business park environment is advantageous to Modway because it is entitled, planned and built for industrial distribution,” Lara said. “This move creates greater operating efficiencies for Modway to service the furniture industry. The location also gains from its freeway access to the Port of LA.”
Andros further noted that they have seen a significant increase in industrial transactions ranging in size from 100,000 to 1 million square feet of space in the Inland Empire this year as compared to 2019.
“COVID has not hurt the industrial market and in fact has driven greater demand for well-located warehouse and distribution facilities as the preference for online shopping continues to increase across the nation,” added Andros.
“Business expansion and job creation are priorities for our economic development team. We look forward to working with everyone involved to both welcome Modway as well as help to fulfill the development of Hesperia Commerce Center One as it represents the opportunity to bring more industry and jobs to the High Desert,” said San Bernardino County Interim Economic Development Director Soua Vang.
“We are excited to welcome Modway to our City. This is a great community for corporate expansion and this new development is a market changer for us and the High Desert. Moreover, we have the housing and cost of living that can continue to support employee growth and attraction,” said City of Hesperia Economic Development Manager Rod Yahnke.
Modway supplies the furniture and design trade with over 7,000 SKUs stored in from its strategically located east and west coast warehouses. Modway provides extensive in-stock color, size, and style options with no order minimums, full drop-shipping capabilities, real-time inventory counts, and an easy online ordering process.