Covington Gets OK for Massive SoCal Industrial Development

Industrial real estate specialist Covington Group has obtained full entitlements for Antelope Valley Commerce Center in Palmdale, Calif. All together, the development will contain as much as 9.4 million square feet on 510 acres.

Previously, the company had won entitlements for AVCC West, which totals about 1.4 million square feet. The latest entitlements cover AVCC East, and allow for considerably more space: just over 8 million square feet. Covington notes in a statement that the approvals amount to one of the largest industrial entitlements ever done in Los Angeles County.

The project can accommodate small, mid-sized and large industrial space users, fostering a diverse tenant mix. Considering the flexibility of the development plans, those could include emerging regional operators as well as major national and international companies.

One feature of the development is the potential for a single building measuring as much as 2 million square feet. Covington also announced that ultimate build-out will run in excess of $1.2 billion.

Specifications overall call for up to 42-foot clear heights and ESFR fire sprinkler systems. The exteriors will include sizable truck courts and trailer parking and dock-high and grade-level loading. Build-to-suit office configurations are doable, according to Covington.

Los Angeles industrial market slows

Development of industrial product in LA County is relatively sluggish, with 0.7 percent of stock currently under way, according to Yardi Matrix data. That compares with 1.8 percent nationwide.

Covington controls more than 2,000 acres of industrial development sites, mainly in southern California, but also in other parts of the country. The company still holds much of the property it has developed, roughly 8.4 million square feet out of total development of 30 million square feet.

Earlier in 2026, Covington secured a $33.8 million construction loan for a 428,185-square-foot industrial development in Hesperia, Calif., which is in the Inland Empire.  The company is developing the building on behalf of Pixior Group, a third-party logistics provider, which has the option to occupy and buy the property when completed.