NewMark Merrill JV to Develop Inland Empire Shopping Center
The project is the second phase of a 100-acre development.
A joint venture of NewMark Merrill Cos., World Premier Investments and R.Y. Properties Inc. will develop Desert Sky Plaza II, a 297,363-square-foot retail center in Victorville, Calif. Groundbreaking is scheduled next quarter, with delivery slated for fall 2027.
The Inland Empire project is the second phase of Desert Sky Plaza, a 100-acre commercial property anchored by Winco and Home Depot. Upon completion, Desert Sky Plaza will feature more than 800,000 square feet of retail space.
Designed by Kimley-Horn and Architects Orange, Desert Sky Plaza II will rise across a 30-acre site at the southeast corner of Roy Rogers Drive and Amargosa Road. The future property is already 70 percent pre-leased and will be anchored by Target and Burlington stores. NewMark Merrill Vice President Greg Giacopuzzi and Senior Vice President Darren Bovard handle the development’s leasing activity.
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The first phase at Desert Sky Plaza came online in 2006 at 15655 Roy Rogers Drive, on a 12-acre site, just off Interstate 15. Other major thoroughfares in the area include U.S. Route 395, as well as California state routes 18 and 138, which connect the property to San Bernardino, Calif., 38 miles south. The property serves upward of 83,200 residents on a 3-mile radius, with average household incomes of $83,745, according to NewMark Merrill data.
The NewMark Merrill development team included Chairman & CEO Sandy Sigal, COO Sunsan Rorison, Senior Vice President Jim Patton, CFO Sandra Kist, Executive Vice President Brad Pearl, Chieft Development Officer Luca Giovanardi, Vice President Greg Giacopuzzi and Senior Project Manager Elaine Weiss.
Retail shows confident start of the year
The U.S. retail landscape started the year with a new sense of resilience, according to recent retail market trends, even though performance varies depending on asset quality and location. Recently renovated properties situated in prime locations, as well as necessity-based retail continue to see significant growth, while aging shopping centers struggle in the face of rising costs and changing consumer behavior.
Last year, open-air centers, lifestyle-driven corridors and mixed-use properties appeared to be the preferred retail destinations, a trend expected to continue throughout 2026. Against this “flight-to-quality” backdrop, co-tenancy emerged as an important factor, with luxury and contemporary brands strengthening their dominance due to shared aesthetics.
However, the retail market will have its fair share of challenges this year, among which high construction and operating costs, tariff-driven price volatility and labor constraints. Both retailers and landlords are pressured into reassessing budgets and their operation procedures.
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