Tejon Ranch Co. and Dedeaux Properties broke ground in spring 2026 on a speculative Class A warehouse on I-5, with delivery set for early 2027.
Tejon Ranch Commerce Center Building 1B is a 510,385-square-foot speculative Class A warehouse under construction on 24.57 acres near Lebec in Kern County, California, about 30 miles south of Bakersfield. Tejon Ranch Co. (60%) and Los Angeles-based Dedeaux Properties (40%) began work in the second quarter of 2026. Completion is targeted for early 2027, and no tenant has been announced.
Key takeaways
- Building 1B will total 510,385 square feet on 24.57 acres, with a 36-foot clear height, 100 dock-high doors and 185-foot truck courts. Delivery is scheduled for early 2027.
- Tejon Ranch holds a 60% economic interest in the Dedeaux joint venture and recorded a $6.9 million land sale tied to the deal in the second quarter of 2026.
- Tejon’s existing 2.8 million square feet of joint-venture industrial space at the center was 100% leased as of its Aug. 6, 2026 earnings report.
- Regional brokerage data put Bakersfield-area industrial vacancy at 9.55% in Q2 2026, down from 10.90% in Q1, with 1,489,196 square feet of positive net absorption over 12 months.
- About 11 million square feet of industrial entitlements remain in a 20-million-square-foot master plan, according to the May 4, 2026 groundbreaking release.
Project at a glance
| Item | Detail |
|---|---|
| Project | Tejon Ranch Commerce Center (TRCC) Building 1B, listed by Tejon as Site 1B |
| Location | East of Interstate 5 near the I-5 and State Route 99 junction, Lebec area. Tejon’s listing places the site at Santa Regina Drive and Santa Mercedes Drive. |
| Owner | 60-40 joint venture of Tejon Ranch Co. (NYSE: TRC) and Dedeaux Properties, LLC |
| Jurisdiction | Unincorporated Kern County |
| Case numbers | None published for the building. Tejon lists the parcel as fully entitled for General Industrial use. |
| Size | 510,385 SF on 24.57 acres (Tejon’s earnings reports round to about 510,500 SF) |
| Use | Speculative Class A industrial and logistics space for one or several tenants; 4,000 SF of office |
| Status | Under construction since the second quarter of 2026; available for lease through an exclusive leasing brokerage |
| Next step | Completion targeted for early 2027 (Tejon’s leasing site lists the first quarter of 2027); tenant leasing |
What is Tejon Ranch Commerce Center Building 1B?
Building 1B is a 510,385-square-foot Class A industrial building that Tejon Ranch Co. and Dedeaux Properties are building on speculation, meaning without a signed tenant. The partners announced the groundbreaking on May 4, 2026. Tejon’s first-quarter 2026 report said construction began after March 31, 2026.
The building can serve one tenant or several. The May 2026 release lists these specifications:
- 510,385 square feet on 24.57 acres
- 36-foot clear height
- 100 dock-high doors
- 185-foot cross-dock truck courts
- ESFR fire sprinkler system (a design that suits tall, high-piled storage)
- 4,000 square feet of office space
Tejon’s second-quarter 2026 results describe the project as a 60-40 joint venture and round the size to about 510,500 square feet. The same report credited a $6.9 million land sale tied to the Dedeaux venture as the main driver of commercial and industrial revenue, which rose to $9.7 million from $5.1 million a year earlier.
Tejon’s TRCC leasing site lists delivery in the first quarter of 2027. For a plain-English look at which specs matter to tenants, see our guide to industrial building specifications.
Where is Building 1B at Tejon Ranch Commerce Center?
Building 1B sits on the east side of Interstate 5 at the center, which straddles the I-5 and State Route 99 junction at the south end of the San Joaquin Valley. The center is about 60 miles north of Los Angeles and 30 miles south of Bakersfield, according to the October 2024 joint venture announcement. Tejon’s Site 1B listing places the parcel at Santa Regina Drive and Santa Mercedes Drive and describes it as fully entitled.
The partners sell the location on reach. The May 2026 release cites immediate I-5 access and links to the I-15 and I-40 corridors via State Route 58. The center is also part of Foreign Trade Zone 276, which the partners say lets tenants defer or reduce customs duties on imported goods. Our Kern County logistics guide explains why those three highways matter.
The east side is filling in. Nestle USA bought 58 acres on the east side and announced the opening of its 700,000-square-foot automated distribution center on June 10, 2026, under an Arvin address. Tejon also credits the Hard Rock Casino Tejon opening and its Terra Vista apartments with rising traffic at the center.
What was on the site before? The center’s history and prior plans
Tejon Industrial Complex, 2000 to 2007
The center began as the Tejon Industrial Complex. In October 2000, IKEA and Tejon broke ground on a 1.8-million-square-foot distribution center on 80 acres. It joined Petro Travel Plaza as an anchor of a planned 350-acre complex. That original section west of I-5 was completely sold out by February 2022, and development has since shifted east.
The east side took longer to entitle. Kern County first approved the 1,109-acre Tejon Industrial Complex East expansion in 2003 under an environmental impact report filed as SCH 2001101133. The Center for Biological Diversity and other groups sued, a court set the 2003 approval aside, and the county re-approved the project in November 2005 after more air quality analysis. A Kern County judge dismissed the remaining challenges in March 2006, and the 5th District Court of Appeal upheld the expansion in April 2007. Tejon said the litigation delayed the project about four and a half years.
Joint ventures and Dedeaux’s first building
Tejon has built and owned space through partners as well as selling land. In 2016 it formed a 50-50 venture with Majestic Realty, and that partnership now owns five buildings totaling nearly 2.8 million square feet at the center.
Dedeaux’s first project was on the west side. Tejon reported in February 2022 that Dedeaux bought about 12.2 acres on Dennis McCarthy Drive, the last industrial site Tejon owned west of I-5. Dedeaux and partner Basis Investment Group built a 233,000-square-foot warehouse there. They sold it in March 2024 for $37.1 million, about $159 per square foot, to a national clothing and textile distributor relocating from the Inland Empire.
From 2024 announcement to 2026 groundbreaking
Building 1B is not new on paper. Tejon and Dedeaux announced the joint venture on Oct. 10, 2024, describing a 510,500-square-foot cross-dock building on a 25-acre parcel east of I-5 with no start date. Ground broke in the second quarter of 2026.
In between, Tejon changed CEOs and Kern’s warehouse market slowed. Regional brokerage reports showed negative 12-month net absorption in mid-2025. CEO Matt Walker told The Bakersfield Californian, “We think that right now is the right time to move forward.” He added that “most tenants want to move into a new building in a matter of months” and “don’t want to wait 15 to 18 to 20 months.”
Who is behind the Tejon Ranch Commerce Center Building 1B project?
A 60-40 joint venture of Tejon Ranch Co. and Dedeaux Properties, LLC owns Building 1B, with an exclusive leasing brokerage marketing the space and Fullmer Construction as general contractor.
Tejon Ranch Co. (NYSE: TRC) controls a 270,000-acre landholding used for commercial and industrial development, master-planned communities, farming and ground leases, per the May 2026 release. Matthew Walker became president and CEO on March 31, 2025, after 24 years at Lowe Enterprises, succeeding Gregory Bielli. Tejon holds its industrial buildings at the center through joint ventures. Per its Aug. 6, 2026 report, that portfolio totals 2.8 million square feet and is 100% leased, so Building 1B would add roughly 18%.
Dedeaux Properties, LLC is a Los Angeles-based industrial developer affiliated with DART Warehouse Corporation, a family-controlled national logistics provider that, according to Dedeaux, was founded by longtime USC baseball coach Rod Dedeaux. The May 2026 release puts Dedeaux’s portfolio at more than 14.1 million square feet of industrial space and yards. In a July 2026 interview, CEO Brett Dedeaux called 2026 a transitional year for California industrial, with early signs of recovery, and named power availability as a primary tenant concern.
Project team. A national brokerage holds the exclusive leasing assignment. Fullmer Construction is the general contractor, according to California Construction News.
What does Building 1B mean for the Kern County industrial market?
Building 1B is a bet that the market has turned. Regional brokerage reports put Bakersfield-area industrial vacancy at 9.55% in Q2 2026, down from 10.90% in Q1, with 1,489,196 square feet of positive net absorption over 12 months. Average asking rent was $10.05 per square foot triple net (NNN, meaning the tenant pays taxes, insurance and maintenance on top of rent). The regional brokerage report does not state a period; this article treats it as annual (about $0.84 per SF per month).
The same report counted 510,385 square feet under construction, the same figure as Building 1B, against about 69.4 million square feet of inventory. It said logistics buildings face more vacancy and pricing pressure than flex and specialized space, but expects a thin pipeline to bring vacancy down gradually. Brokerages measure markets differently, so rates from different firms are not directly comparable. For help reading these metrics, see our guide on how to read an industrial market report.
| Measure | Figure | Source |
|---|---|---|
| Bakersfield/Kern vacancy, Q2 2026 | 9.55%, down from 10.90% in Q1 2026 | Regional brokerage report |
| Bakersfield/Kern asking rent, Q2 2026 | $10.05/SF NNN (period not stated in the report; treated as annual, about $0.84/SF/month) | Regional brokerage report |
| Inland Empire Core vacancy, Q2 2026 | 7.4%; IE East 9.0% | National brokerage report |
| Inland Empire Core asking rent, Q2 2026 | $1.08/SF/month NNN | National brokerage report |
| Inland Empire overall vacancy, Q2 2026 | 8.8%, up 50 basis points | Brokerage market report |
| Fresno availability, Q2 2026 | 5.0%; asking rent $0.73/SF/month NNN | Brokerage market report |
| U.S. industrial vacancy, Q2 2026 | 6.9% | Brokerage market report |
The Southern California comparison
The center competes as much with the Inland Empire as with Bakersfield. A national brokerage’s Q2 2026 figures show Inland Empire Core vacancy at 7.4%, down 40 basis points from the prior quarter, with IE East at 9.0%. New leasing hit a record 15.5 million square feet, and average asking rent in the IE Core was $1.08 per square foot per month.
Another national brokerage report reads the region more cautiously. Overall Inland Empire vacancy rose 50 basis points to 8.8% in Q2 2026, with 3.8 million square feet of occupancy losses through mid-year. Still, it ranked the Inland Empire second nationally for year-to-date leasing.
The brokerage leasing Building 1B makes the price argument. A brokerage executive told the Los Angeles Business Journal that the center is considered a cheap alternative to Los Angeles, with rents often 50% lower, and that 54 million people can be reached within a one-day truck drive.
Demand drivers and competition
The case for the center rests on land and labor. Dedeaux executive Rishi Thakkar told the Business Journal that assembling 25 acres in Los Angeles is very difficult. A 2023 brokerage brief counted 43,990 warehouse and distribution workers in the South Central Valley.
For Kern owners, the practical read is that large, older distribution buildings face the most direct competition, since tenants moving in 2027 will have a new 36-foot-clear option on I-5. Smaller and flex buildings overlap less with a big-box design carrying only 4,000 square feet of office. Other large Kern projects include Airport Commerce Center and the Ross distribution center in Bakersfield.
Are there concerns or conditions?
No opposition and no new public hearing has been reported for Building 1B. Tejon lists the parcel as fully entitled, and the legal fight over the east-side expansion ended in 2007 after the courts required more air quality analysis.
The main risk is the market. Building 1B is speculative (our guide to build-to-suit versus spec development explains the difference), and regional brokerage reports still described Bakersfield logistics vacancy as elevated in mid-2026. On the other side of the ledger, Tejon reports that all 2.8 million square feet of its joint-venture industrial space is leased. Dedeaux said its earlier 233,000-square-foot building drew multiple tenant inquiries before it sold.
What happens next for Building 1B?
Construction continues toward an early 2027 delivery, and leasing is the next milestone.
- Construction through early 2027. Tejon’s 2026 outlook says Building 1B is on track for early 2027 delivery.
- Leasing. The exclusive leasing brokerage is marketing the building to one or more tenants. No tenant has been announced, and none appeared in Tejon’s releases through its Aug. 6, 2026 earnings report.
- Next disclosure. Tejon’s third-quarter 2026 results should update construction progress and leasing.
- Longer term. About 11 million square feet of industrial entitlements remain, per the May 2026 release, so the pace of Building 1B’s lease-up will shape how fast the next building starts.
Building 1B is separate from Tejon’s residential and mixed-use entitlement work. For that side of the ranch, see our article on the Grapevine at Tejon Ranch plan amendment.
Frequently asked questions
What is being built at Tejon Ranch Commerce Center in 2026?
Tejon Ranch Co. and Dedeaux Properties are building Building 1B, a speculative Class A warehouse of 510,385 square feet on 24.57 acres east of Interstate 5. The design includes 36-foot clear height, 100 dock-high doors, 185-foot truck courts and 4,000 square feet of office. Work started in the second quarter of 2026.
When will TRCC Building 1B be finished?
Tejon expects delivery in early 2027, and its leasing site names the first quarter of 2027. Construction began after March 31, 2026, per Tejon’s first-quarter report, with the groundbreaking announced May 4, 2026.
Who owns Tejon Ranch Commerce Center Building 1B?
A 60-40 joint venture of Tejon Ranch Co. (NYSE: TRC) and Los Angeles-based Dedeaux Properties, LLC owns the building. Tejon holds the 60% economic interest and booked a $6.9 million land sale tied to the venture in the second quarter of 2026. Dedeaux is affiliated with DART Warehouse Corporation, a family-controlled logistics company.
Is Building 1B at Tejon Ranch already leased?
Not yet. No tenant has been announced, and Tejon’s Aug. 6, 2026 report named none. The building is designed for one tenant or several, and Tejon’s leasing site lists Site 1B as available through its exclusive leasing brokerage.
How big is Tejon Ranch Commerce Center?
The center is a roughly 1,450-acre, 20-million-square-foot master-planned industrial and commercial development at the I-5 and State Route 99 junction. As of May 2026, Tejon said it had about 7 million square feet of developed industrial space, about 11 million square feet of entitlements left and about 5,000 workers on site.
Which companies operate at Tejon Ranch Commerce Center?
Industrial tenants named by Tejon and Dedeaux in May 2026 include IKEA, Nestle USA, L’Oreal, Caterpillar, Dollar General, Camping World, Famous Footwear and Plant Prefab. The center also has the Outlets at Tejon, a TA Petro travel center and the Terra Vista at Tejon apartments.
How does Kern County industrial vacancy compare with the Inland Empire?
For Q2 2026, a regional brokerage report put Bakersfield-area vacancy at 9.55%. National brokerage reports showed 7.4% for Inland Empire Core and 8.8% for the whole Inland Empire. Kern asking rents averaged $10.05 per square foot NNN. The regional brokerage report does not state a period; this article treats it as annual (about $0.84 per SF per month). Inland Empire Core asking rents were $1.08 per month, so the two are not directly comparable without converting units.
Weighing a lease, sale or expansion near the Grapevine or elsewhere in Kern County? Call Kern CRE at 855-KERN-CRE (855-537-6273) or contact us for current availability and rent comparables. Get Kern County CRE news monthly: subscribe to the Kern CRE report.
Sources
- Tejon Ranch Company Announces Second Quarter 2026 Financial Results, Tejon Ranch Co. via Nasdaq, Aug. 6, 2026.
- Tejon Ranch Co. and Dedeaux Properties to Break Ground on 510,000-Square-Foot Industrial Facility, GlobeNewswire, May 4, 2026.
- Tejon Ranch Co. Announces First Quarter 2026 Financial Results, SEC Exhibit 99.1, May 7, 2026.
- Tejon Ranch Co. Announces Fourth Quarter and Year-Ended December 31, 2025 Financial Results, GlobeNewswire, March 19, 2026.
- Tejon Ranch Company and Dedeaux Properties Announce Joint Venture to Develop Industrial Warehouse, Tejon Ranch Co. via Yahoo Finance, Oct. 10, 2024.
- Site 1B, Tejon Ranch Commerce Center.
- Industrial, Tejon Ranch Commerce Center.
- Tejon Ranch Co., Dedeaux Properties to break ground on 510,385-sq.-ft. industrial facility in Lebec, California Construction News, May 11, 2026.
- Tejon Ranch Co. partners with SoCal developer on speculative industrial project near Grapevine, The Bakersfield Californian via Yahoo Finance, May 4, 2026.
- Dedeaux Properties CEO Brett Dedeaux On California’s Next Industrial Cycle, Commercial Observer, July 20, 2026.
- Dedeaux, Basis Investment Group Sell Tejon Ranch Facility to Clothing Distributor, Commercial Observer, March 19, 2024.
- Tejon Ranch Company, Dedeaux Plan 511K-SF Warehouse in Central California, Commercial Observer, Oct. 11, 2024.
- Industrial Real Estate: Dedeaux Properties Looks North, Los Angeles Business Journal, reposted by Dedeaux Properties, June 15, 2026.
- About, Dedeaux Properties.
- Tejon Ranch Company Announces Appointment of New President & CEO, Tejon Ranch Co., Feb. 11, 2025.
- Industrial Properties in the Original Section of Tejon Ranch Commerce Center West of Interstate 5 Completely Sold Out, GlobeNewswire, Feb. 10, 2022.
- IKEA and Tejon Ranch Co. Break Ground on 1.8 Million-Square-Foot Distribution Facility, Tejon Ranch Co., Oct. 23, 2000.
- SCH 2001101133, Tejon Industrial Complex East Specific Plan (Kern County), CEQAnet, Governor’s Office of Land Use and Climate Innovation, notice of preparation Oct. 24, 2001; notice of determination July 14, 2003.
- Kern County Judge Okays Expansion of Tejon Industrial Complex, Tejon Ranch Co., March 27, 2006.
- Appeals Court Upholds Expansion of Tejon Industrial Complex, Tejon Ranch Co., April 9, 2007.
- Majestic Realty Comes to Tejon Ranch Commerce Center, Tejon Ranch Co., Aug. 10, 2016.
- Nestle USA Opens Its Largest and Most Technologically Advanced Distribution Center in Arvin, California, Nestle USA, June 10, 2026.
- Bakersfield, CA Q2 2026 Industrial Market Report, Lee & Associates, July 2026.
- Inland Empire Industrial Figures Q2 2026, CBRE, July 9, 2026.
- Inland Empire Industrial MarketBeat Q2 2026, Cushman & Wakefield, Q2 2026.
- Modest New Supply and Intensifying Demand Push Industrial Vacancy Back Below 7%, Cushman & Wakefield via Business Wire, July 23, 2026.
- Fresno Industrial MarketBeat Q2 2026, Cushman & Wakefield, Q2 2026.
- Emerging Industrial Markets: South Central Valley, California, CBRE, Jan. 25, 2023.
About this article
Kern CRE prepared this article with help from AI research and writing tools. An editor reviewed the draft, checked its facts against the sources linked above and edited it for accuracy and clarity. Details come from public records and the sources cited; unless stated, Kern CRE and ASU Commercial were not involved in the transaction or project.