For Dedeaux Properties, California’s notoriously challenging development environment can be both a hindrance and a competitive advantage. Speaking with Commercial Observer, company CEO Brett Dedeaux explained why the firm views Tejon Ranch as an attractive alternative to Los Angeles County and the Inland Empire. He also detailed how state regulations can increase the value of planning permissions and why the company remains committed to its home region. Greg Cornfield wrote this article on 27 July 2026.
Tejon Ranch as a strategic logistics location
Tejon Ranch is rapidly evolving into an alternative logistics hub. Brett Dedeaux explained that Dedeaux Properties acquired land there several years ago and built approximately 230,000 square feet of industrial space with additional lorry parking. This project was highly successful and was sold to an end-user in 2024. This led to a more extensive joint venture with Tejon Ranch to develop further industrial space. A key incentive for logistics companies in Tejon Ranch is the availability of affordable labour and more economical housing. Dedeaux describes Tejon Ranch as the “Texas of California” due to its very business-friendly environment, where processes are relatively swift and less heavily regulated.
For large-scale projects that would otherwise have to move further east to Beaumont, Banning, or the High Desert, Tejon Ranch represents a competitive alternative, especially considering transport costs. From here, not only is the L.A. Basin easily accessible, but Northern California as well as the western and north-western parts of the USA can also be served. Another crucial advantage is the abundant energy supply in Tejon Ranch.
In contrast, markets such as the San Fernando Valley, which would be one of the country's largest cities if it seceded from Los Angeles, are already very mature and fully utilised. The same applies to Santa Clarita and Valencia, which serve as central distribution hubs for major companies such as Nestlé, Caterpillar, and Ikea. Companies needing larger spaces – even under 200,000 square feet – often no longer find them in the Valley, making Tejon Ranch the next potential level of expansion. The location benefits from adjacent markets while simultaneously acting as a regional hub. Additionally, numerous residential projects are planned there. Dedeaux expressed enthusiasm for the current construction projects and future developments, as he considers the fundamentals strong, given the lack of vacancies.
California’s regulatory environment: Hindrance and value creation
Addressing California's reputation as a highly regulated state – with issues like AB 98 and Measure ULA prompting companies to move to other states – Brett Dedeaux emphasised the need to explain California's advantages to capital partners. He points to its role as the most populous state with a diverse and highly innovative economy, as well as the largest ports. Dedeaux highlighted that every business owner in the state has an interest in California remaining competitive, cost-effective, and a place where businesses can operate successfully. His personal insight is the necessity of engagement; he himself served on the board of CREDA, and other employees are active in leadership positions within industry associations. This is crucial to ensure that regulations and laws are appropriate and enable business growth.
Strict regulation, such as that in California compared to states like Texas, also creates a natural limit on oversupply. Dedeaux noted that it is significantly more difficult to realise projects here. An example of this is the recent approval for almost 800,000 square feet of space in the City of Commerce, near Downtown L.A. Such approvals are of immense value because they create high demand due to the complexity of the process. He stressed that the ability of a team to obtain first-class planning permissions in California allows for significantly greater value creation, precisely because the process is more demanding. At the same time, it is important to support leaders in California who want to keep the state competitive and attractive for living and doing business. Continuous engagement is essential to maintain this direction.
