California’s Moreno Valley Foresees Continued Growth With Its Planned Mall Redevelopment

Much has been written about the plight of cities caught in so-called doom loops of continuously declining populations and dwindling business activity. 

But some cities might be more accurately said to be the beneficiaries of an urban “boom loop,” in which local growth continues to cycle upward despite the headwinds battering other towns or regions.

Southern California’s Moreno Valley, the 20th-largest city in the state, is one such place. Located about an hour’s drive east of Los Angeles in the fast-growing Inland Empire region, the city is projected to see its population of approximately 214,000 people grow more than 4% annually through the rest of the decade. 

Growth could accelerate even more when plans to redevelop an 87-acre mall site in the city come to fruition, said Cruz Esparza IV, Moreno Valley economic development and housing director.

“The city has approved a plan that involves developing property on the site that is currently used for parking to include multifamily housing, as well as hotels to cater to business travelers and tourists,” he said. 

Esparza said population growth isn't the only positive metric for the city. Average household income rose from about $63K to $101K in the past decade, and the city’s job base grew 16.5% between 2023 and 2024. Moreno Valley is home to 32M SF of industrial space and more than 4,500 businesses of all kinds, including Fortune 500 companies and mom-and-pops.

It is also adding housing rapidly. Esparza estimated that nearly 8,000 new single-family and multifamily units are working their way through the city’s review and construction pipeline. 

“I’ve worked for other cities, and I have to say, the amount of homebuilding here is unmatched,” said Esparza, who took on his Moreno Valley role in November 2023.

All of these positive trends in jobs, population and housing have caught the eyes of businesses, helping to fuel the city's continued rise, he said.

“Businesses here see that their workforce doesn't have to commute as much with all the local housing being built, leading to more job growth,” Esparza said. “Housing developers follow suit with more construction, and then the businesses see there's more workforce housing to accommodate their growth. It’s been a nice synergistic match between supply and demand for us.”

None of this happens by accident, which is why the city takes what Esparza described as a “hands-on, pro-business” approach to development. Moreno Valley’s economic development team has a broad mandate that includes business attraction and retention, workforce development and affordable housing development, he said. 

Moreno Valley assigns a dedicated economic development employee, or “concierge,” to each project. Their job is to communicate closely with their business counterparts, answering questions and helping them work through the property entitlement process.  

The city is applying this approach to the redevelopment plan that its city council approved in 2023 for the Moreno Valley Mall. 

Built in 1992, the mall, like many others, saw its fortunes change drastically as consumer buying habits evolved in the internet era. Today, the mall has lost two anchor tenants, and its owner and the city want to re-create it as a mixed-use development that emphasizes housing and green, walkable spaces over parking lots. Meanwhile, much of the existing mall will be remodeled to accommodate modern tastes in shopping and entertainment.

“The mall has always been a jobs hub for the community,” Esparza said. “It's a place where people gather for recreation and shopping, and with the upcoming future development, it'll be a place where people live, too.”

The plan presented by mall owner IGP Business Group envisions two hotels on the site with 270 total rooms, four residential buildings with 1,627 units, a 60K SF office building and 40K SF of plaza-level retail, all on land now used for parking. A transportation hub is planned to accommodate locals and people commuting from neighboring Los Angeles, Orange, San Bernardino, San Diego and Riverside counties.

Under the plan, the existing mall will be remodeled with interior and facade improvements, and two vacant anchor sites will be overhauled to accommodate new retail uses. Its food court will become a pavilion-style food market with indoor and outdoor areas. 

When the work is completed, the redeveloped property is expected to make a big contribution to the city’s already booming economy. The $225M development is projected to generate more than 7,000 temporary jobs, followed by nearly 1,600 permanent jobs representing a total payroll of $63.6M, Esparza said. 

Work hasn't begun on the mall site, but Esparza said his team is doing all it can to ensure the process goes smoothly and contributes to the city’s upward trajectory.

“There is constant communication with the mall owner and his team, as well as us connecting him with potential retailers and hotel and residential developers,” he said. “We have had several meetings with developers and brokers who are very interested in the mall redevelopment and the economic success of Moreno Valley.”

This article was produced in collaboration between the city of Moreno Valley and Studio B. Bisnow news staff was not involved in the production of this content.

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