New Construction Boosts Visalia Industrial Park

New Construction Boosts Visalia Industrial Park

With virtually no vacant space in the Visalia Industrial Park a spurt of new construction is underway that will make room for both new tenants, local company expansions and relocations in coming months.

If there are few empty buildings to lease, Visalia sports about 1,000 acres of land “zoned and ready to go,” according to Visalia economic development  manager staffer Devon Jones.

Developers looking to encourage companies who might want a location in the Central Valley are building several concrete tilt-up “spec buildings” in Visalia that can be ready for tenant improvements and occupancy in a matter of weeks.

Making new projects feasible, the city has a streamlined permitting process and lots are hooked up to sewer and water. In addition there has been a $130 million investment in roads over the past few years with easy access to Hwy 99 and the rest of California.

We are talking ’speedy delivery’ – not just for goods but for new buildings that will house future distribution and manufacturing hubs.

Visalia’s mid-state location makes it attractive for ground shipping of goods to the Western US, enabling parcels to arrive in one-day to many locations.

Hub Central
None other than United Parcel Service appears to be convinced, having invested in the purchase of 58 acres north Riggin at Plaza  earlier this summer. Sources says UPS plans a phased development to start with – a modular sorting center to replace its current small distribution center on Goshen Ave. Then, a 400,000 permanent complex will be next for UPS – said to be the big company’s future main hub in the Central Valley. Growth around its Fresno facility has boxed them in say real estate sources. Visalia’s ample industrial acreage is apparently the answer.

The land is the first parcel to sell in the Central Valley Logistics Center industrial park on the northwest corner of Plaza and Riggin since it was zoned for development a decade ago.

Screen Shot 2017-11-09 at 12.34.57 PM

 

Another big shipper is making Visalia its hub. Golden State Overnight (GSO) now owned by Britain’s Royal Mail, is building a 63,000sf distribution center at a cost of $2.3 million right now.Royal Mail bought GSO last year for $90 million.

 “If Memphis is the biggest hub for FedEx and Louisville is the main UPS hub  – Visalia is our most important hub for the future” says GSO’s McKinley.

The company has a smaller facility it leases now that has truck docks only on one side, says company VP Bob McKinley. The complex being built by Visalia based American Inc will offer triple the number of cargo doors on both sides with full automation on the conveyor system, he says.

The GSO hub will employ about 70 when it opens and likely double that in some years expects McKinley.

“If Memphis is a the biggest hub for FedEx and Louisville is the main UPS hub  – Visalia is our most important hub for the future” says GSO’s McKinley.

Speedy Construction

Perhaps the most active developer who has long recognized the need to offer new industrial space in Visalia ahead of demand  – is John Brelsford of Fresno who owns Diversified Development Group.

Last summer Brelsford broke ground on a fast-track construction project to build 3 clustered industrial buildings in a matter of weeks along Riggin near VF Corp, completing them – a total of 403,000sf – by late October of this year.

Commuters passing by each morning last month marveled at the rapid progress on construction each day.

Screen Shot 2017-11-09 at 12.39.53 PM

While Mr Brelsford says he can’t reveal prospective tenants he is working with International Paper, who a has major paper cup manufacturing plant here, will use the most northerly building, a 140,000sf space according to the City of Visalia who received tenant improvement plans in recent days.

“They are about ready to move in” says city planner Jason Huckleberry.

A second space is close to being filled as well says Mr Brelsford.

Next Phase Coming 

Because interest has been so brisk Brelsford is not waiting to build more “spec” space. He says he expects to build about 800,000sf beginning next March on 33 acres he owns on the southeast corner of Plaza and Riggin, a few blocks from his other project.

Last year Brelsford acquired another big parcel at Plaza and Riggin – 150 acres from Doe family – now fully entitled and in the city limits at the northwest corner of this same key intersection.The spot is just 1.5 miles from the new Betty Drive interchange on Hwy 99 that is expected to be complete in a few months.

If newcomers make the news, expansion of existing industrial park tenants are the bread and butter of Visalia’s economy.

While some worry that many new distribution companies looking here take larger spaces of source but actually have few employees. But some are both big on their space needs and offer lots of jobs

Consider VF Corp, the international clothing maker, who has a million square foot distribution center on Plaza Drive. VF, maker of Wrangler, Lee Jeans and NorthFace outdoor clothing, employs up to 1,100 people and most of them live within a 10-15-mile radius from the facility says the company.VF has recently completed a $3 million upgrade to their facility and plans more in 2018.

Another industrial park tenant that continues to grow larger is Perfection Pet Foods, a division of  Western Milling, based in Goshen. The pet food maker is building a $6.2 million office and warehouse right now. Owner Kevin Kruse says they are replacing a 100,000sf warehouse a few miles away.”We wont have to move our products across town” from their manufacturing plant, he figures. The new warehouse will house products ready to ship to Walmart and other large customers. Perfection Pet Foods employs about 120  at their growing campus of buildings in the northwest part of the industrial park.

As interest in new buildings grow, the vacated space makes room for others who will likely gobble up this 100,000sf left by the pet food company, for example.

Meanwhile smaller players like local developer Danny Freitas says his various Visalia industrial park spaces are all spoken for and he will now build two new 40,000sf “spec” warehouses for lease, one on Kelsey and one on Sunnyview.

Also in the industrial park, Servall, the big appliance parts and repair company says they will open their new sales and distribution center in Visalia in December 2017 at 2247 N. Plaza Dr., Suite D, in am existing 35,000 sf building – one of the few vacant spots in the Mid-State 99 complex.

The company cited their ability to do one-day shipping of appliance parts to consumers and businesses throughout all of California.The business will employ 20.

Speedy Delivery 

 

Plastics manufacturer will bring 120 jobs to Dinuba

Arkansas-based Delta Plastics has announced plans to build a new manufacturing facility in the Tulare County town of Dinuba. Photo via Delta Plastics website

published on November 2, 2017 – 1:33 PM

Written by David Castellon

 

The world’s leading manufacturer of irrigation polytube for the agricultural industry has chosen land north of Dinuba as the location for its new manufacturing plant.

“Tulare County was chosen after an extensive search throughout California for the best location for their venture,” according to a press release issued today by the Economic Development Corp. of Tulare County.

The agency reports that Arkansas-based Delta Plastics plans to build a 75,000-square-foot manufacturing plant in an industrial park off Road 68 in the area of Avenue 430 and employ up to 120 people there.

EDC President Paul Saldana said, “120 manufacturing jobs are pretty significant,” adding that he sees a lot of opportunity for Delta plastics to grow its operation in the coming years.

The new plant, operating under Delta’s Revolution Plastics division, will produce polytubes — hollow, high-grade plastic tubes that can be rolled out into fields and have holes punched into them to insert water emitters. The tubes are filled with water and expand, much like a fire hose, except the water shoots out of the emitters, irrigating nearby crops.

The plant also will produce Revolution Bag trash can liners made from recycled polytube material and other plastics that the company plans to collect from agricultural operations throughout the state to process at the Dinuba plant.

Delta Plastics officials couldn’t be reached immediately for comment, but a video on its website states that a portion of the recycled plastics are sold to other manufacturing businesses.

Delta currently has two manufacturing plants in Little Rock, Arkansas and Mesquite, Texas, along with a recycling plant in Stuttgart, Arkansas.

“We look forward to our growth and partnering with the agriculture industry in California as we expand our commitment to waste diversion and recycling throughout the state,” Louis Vasquez, Delta Plastic’s director of corporate development, said in a press release.

“We are excited about Revolution Plastics coming to the Dinuba area and look forward to having their employees live, shop and dine in our community,” Dinuba Mayor Scott Harness said in the same release.

Saldana said EDC representatives spent a long time showing Delta officials developed and undeveloped sites in Tulare County, and he believes that variety of available space helped sway the company to choose the Dinuba area, along with its central location in the state.

Plastics manufacturer will bring 120 jobs to Dinuba

 

Manufacturing company expands to Tulare County

DINUBA 
November 2, 2017 10:52am

 

•  Makes irrigation tubing for agriculture

•  “Partnering with the agriculture industry in California as we expand our commitment to waste diversion and recycling”


Delta Plastics of Little Rock, Arkansas, which makes irrigation polytube for the agriculture industry, is locating its new venture, Revolution Plastics, in Tulare County.

According to Louis Vasquez, the company’s director of corporate development, Tulare County was chosen after an extensive search throughout California for the best location for their venture.

“The Tulare County Economic Development Corporation was instrumental in assisting us in identifying sites, providing needed information and connecting us with local contacts that assisted us in our site search,” he says.

Revolution Plastics is expected to eventually employ 120 people and will make products from recycled California-sourced ag plastics.

“We are excited about Revolution Plastics coming to the Dinuba area and look forward to having their employees live, shop and dine in our community,” says Dinuba Mayor Scott Harness. The facility will be located just north of the Dinuba city limits and will include the construction of a 75,000-square foot building.

Delta Plastics operates manufacturing facilities in Little Rock and in Mesquite, Texas. The facilities make the company’s signature polytube products, Revolution Bag can liners and other construction and ag films, which will be produced at the new California facility. Delta also operates a recycling facility in Stuttgart, Arkansas, which has diverted over 1.2 billion pounds of waste material from landfills since 1998.

“We look forward to our growth and partnering with the agriculture industry in California as we expand our commitment to waste diversion and recycling throughout the state” says Mr. Vasquez.

http://www.centralvalleybusinesstimes.com/stories/001/?ID=33573

Supply-chain management company offers fulfillment center capabilities

LATHROP—Many smaller companies need the capabilities of a large-scale fulfillment distribution center, but don’t have the space or capital of Amazon or other mega-shippers. Many supply-chain management companies help with business conundrum.

One company with local centers just might have the ecommerce solution for many valley businesses without resources.

Dearborn, Michigan-based Hollingsworth is an end-to-end supply chain management company with 28 distribution facilities located throughout the U.S. and two such locations in Tracy and Lathrop.

In 1991, Hollingsworth began by shipping parts for the Ford Motor Company, a relationship that continues to this day. They are the primary packager for the automotive giant.

By taking on multiple clients, Hollingsworth is able to parse out warehouse space, bringing shipping costs down.

“In the Lathrop area we are very much focused on ecommerce and retail and direct-to-consumer,” said Brian Sheehan, sales and marketing manager for Hollingsworth in this region. “We have local companies and companies that are overseas. It depends on the port of entry for their goods.”

Sheehan said many of their customers are manufacturers, and multiple facilities may be used for one client. Increased facilities also helps Hollingsworth offer same day shipping on behalf of its clients to most areas.

“In a shared warehouse, there’s shared costs,” Sheehan said, allowing for the cost savings to be passed onto the client.

Hollingsworth offers solutions to warehousing, fulfillment, packaging, inventory and program management and more, allowing those who use their services to scale their businesses easily without the hassle of dealing with expansion costs.

With the holiday season estimated to be the peak time for sales, Hollingsworth is preparing for the increased traffic. It’s estimated that the holiday rush accounts for 30 percent of annual sales for many retailers.

Alphabet’s Waymo Is Using A Castle In Its Bid To Become Self-Driving Car King

Less than a year since Google’s Self-Driving Car project became Waymo, the company is close to commercializing its extensive R&D. The Alphabet Inc. unit this week showed off how it’s fine-tuning sensors and software on faux city streets at a secret complex in a sleepy agricultural section of California to achieve that goal.

Known as the Castle, a nod to its former life as Castle Air Force Base, the Atwater, California, facility is where Waymo technicians since 2012 have safely created what they call “spicey” scenarios – complex interactions with other cars, pedestrians and bicyclists to help its robotic vehicles get smarter. CEO John Krafcik said tests there on streets with names like McFly Way and the Shirley Muldowney Expressway are vital complements to the 10,000 miles of public road tests and 10 million virtual miles Waymo now racks up daily.

“Our intention, make no mistake, is to go fully driverless and let the public access this technology on public roads. We’ve been working so hard on that task,” he told a group of journalists touring the Castle this week. And while Krafcik, a long-time Hyundai and Ford executive who’s led the former Google X unit since 2015, won’t say exactly when Waymo goes commercial, he leaves no doubt that that’s coming.

“It’s fair to say we’re really close.”

A decade since a team of Carnegie Mellon University engineers won the 2007 DARPA Urban Challenge and eight years since Google began a (once) top-secret program to perfect autonomous car technology, Waymo appears to be at the leading edge of the self-driving revolution. After more than a $1 billion of R&D, it’s weathered the loss of key founding team members, faces numerous competing programs at auto and tech companies and is pursuing a rancorous lawsuit with Uber. Yet Waymo’s approach to testing, deployment and strategic partnerships is unfazed and laser-focused on building a business.

Google began doing vehicle tests at the Castle in 2012 after it outgrow a parking lot near company headquarters in Mountain View. While the old base’s tarmac is a bit past its prime, Waymo created a variety of new streets, a roundabout, cul-de-sacs and a highway-like section, all ringed by solar-powered streetlights. A few of the old Air Force buildings and barracks left when the base was decommissioned in the 1990s have been repurposed for Waymo engineers, while others appear to be slowly deteriorating.

On the Castle’s streets careless workers unloading a moving van might unexpectedly drop boxes in the path of a vehicle; rude drivers veer into a Waymo minivan’s lane abruptly and without signaling; and cars backing out of driveways in a simulated residential neighbor pull out when least expected. None of these scenarios appear to trouble the robots at the wheel.

In April Waymo began an “Early Rider” program in Chandler, Arizona, where residents who applied for the program can hail one its self-driving Chrysler Pacifica Hybrid minivans to take them anywhere they request in the metro-Phoenix area.

Although technicians are in the front seats of those vehicles for added safety for now, Waymo technical chief Dmitri Dolgov told reporters this week the minivans already have Level 4 autonomous capability, meaning they can drive without a human at the wheel in most circumstances. “We’re testing everywhere, in downtown streets, on freeways, on all kinds of streets,” Dolgov said.

To show just how sophisticated Waymo’s system has become, it put reporters in the back of its vans for brief test rides around the 60-acre Castle complex with no human at the wheel. That’s not standard practice for any company developing autonomous vehicle technology. Notably, Waymo didn’t require any of the few dozen journalists in attendance to sign legal waivers before taking a ride.

During the 1.5-mile loop, technicians acting as pedestrians, riding bicycles or driving other cars crossed paths with autonomous Waymo minivans. In each case, none of these distractions proved to be a problem. It was as if a skilled invisible driver was at the wheel. Which is precisely Waymo’s goal.

Krafcik identified four applications for the technology that are “super obvious and likely first steps for us.”

The first is in a ridesharing service – that may or may not be under the Waymo brand. Second is for commercial delivery applications. “Things like trucking and logistics makes a lot of sense for a company like Waymo,” he said.

Waymo may also work with cities to provide “last-mile” services that help people get from their homes to a transit station, for example. Interestingly, supplying the technology for use in personal vehicles ranks only fourth in Waymo’s priorities.

“For sure we see this technology as having the potential to be transformative, to make a lot of really good change for the world.”

FRESNO STATE RECEIVED A LARGE DONATION TO EXPAND THE ENGINEERING DEPARTMENT

FRESNO, Calif. – Fresno State is getting a huge jolt to its engineering program. Monday the school received a 450-thousand dollar donation to help expand the department.

Thanks to a new partnership with Chevron, Fresno State will continue to grow as a leader in stem education
“We have a very strong engineering ag and science and math program — all three coming together so it will elevate the program…make us stronger for all of our students,” said Fresno State President, Dr. Joseph Castro.

Monday representatives from Chevron presented Dr. Joseph Castro and the university a check for $450-thousand dollars. The donation will allow Fresno State to expand its engineering programs and to develop a process and control automation academy at the university. All students who complete the program will receive a special certificate.

“The funding we receive from Chevron will help us to develop materials and purchase equipment and mount this new certificate program that will enable our students to be more successful in preparing for jobs in the manufacturing industry,” said Dr. Castro.

Students say this donation will enable engineering majors the opportunity to advance their skill set and be better prepared for life after graduation.

Engineering major, Elias Karan said, “You’re not only learning theory in the classroom…you’re actually doing some hands-on practical work and that’s a great resume builder it’s going to make our students and our graduates much more competitive especially in the valley.”

Part of the money will also go to Fresno States College of Science and Mathematics Physics outreach program — where engineering majors visit valley schools and educate potential future students.

“We serve largely the valley students so it’s going to strengthen the valley because these students will get out there and become part of the next generation of leaders,” said Dr. Castro.

Commodities company expanding at port with new conveyor system

November 1, 2017

 

PORT OF STOCKTON — One company is making moves to speed up production and make operations more efficient.

M&L Commodities, Inc., based at the Port of Stockton, is expanding its service to include direct-vessel loading and unloading with new high-velocity conveyor belts.

The new conveyors feature 48-inch wide belts and can telescopically reach 190 feet. Maximum delivery of commodities to and from portside vessels can reach a rate of 2,000 tons per hour.

The belts will help with import operations to the company’s facilities, truck and rail and with export from the facilities directly to vessels via ship loader. The move is part of M&L’s expansion plan for infrastructure using “up-to-date, high technology equipment for more productive and efficient operations,” according to a statement released by the company.

M&L Commodities is a logistics service provider, assisting customers with transportation of goods. The company has more than 50 years of experience in international trade. They have strategically placed their operations for close proximity to railways, major interstate arteries and the Port of Stockton.

Their storage facilities are prepared for food grade commodities and organic warehousing, and they refrigerated services, container loading and unloading, full transport operations, vessel loading and unloading and more.

Commodities company expanding at port with new conveyor system

 

Three Kings dairies get CDFA methane grants

  • By John Lindt in Hanford Sentinel

The California Department of Food and Agriculture has awarded $35.2 million in grant funding to 18 dairy digester projects across the state. These projects, part of the Dairy Digester Research and Development Program, will reduce greenhouse gas emissions from manure on California dairy farms.

Projects approved in Kings County include $3 million to Wreden Ranch near Hanford, $3 million to Hanford-area dairy Cloverdale and Hollandia Farms, also of Hanford, awarded $1.5 million. Each dairy had to put up substantially more for their projects in matching funds.

Dairy manure produces methane when it decomposes. Methane is a powerful greenhouse gas that traps more than 80 times as much heat in the atmosphere as carbon dioxide. Dairy digesters help capture methane emissions, which can be used to produce electricity or natural gas.

Each project plans to capture methane emissions from a covered lagoon and transport the gas to a collection point to be converted to biomethane fuel for vehicles. The process turns an airborne pollution problem into a business opportunity.

Central Valley markets stronger than national average

Serious mortgage delinquency rate holds steady

IRVINE
October 10, 2017

•  Nationally, near 10-year low

•  Central Valley markets stronger than national average

Nationally, 4.6 percent of mortgages were in some stage of delinquency (30 days or more past due including those in foreclosure) in July, a 0.9 percentage point year-over-year decline in the overall delinquency rate compared with July 2016 when it was 5.5 percent, according to a new report released Tuesday by real estate financial information company CoreLogic Inc. (NYSE: CLGX) of Irvine.

As of July, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.7 percent, down from 0.9 percent in July 2016 and the lowest since the rate was also 0.7 percent in July 2007.

Here is how Central Valley markets look, according to CoreLogic:

• In Stockton-Lodi, 3.6 percent of mortgages were delinquent by at least 30 days (including those in foreclosure) in July compared with 4.4 percent in July 2016, representing a decrease of 0.8 percentage points. Stockton-Lodi mortgages in serious delinquency (90+ days past due) totaled 1.2 percent in July compared with 1.5 percent in July 2016. The foreclosure inventory rate for this July was 0.3 percent compared with 0.4 percent a year earlier.

• In Visalia-Porterville, 4.9 percent of mortgages were delinquent by at least 30 days (including those in foreclosure) in July compared with 5.3 percent in July 2016, representing a decrease of 0.4 percentage points. Visalia-Porterville mortgages in serious delinquency (90+ days past due) totaled 1.5 percent in July compared with 1.8 percent in July 2016. The foreclosure inventory rate for this July was 0.3 percent compared with 0.5 percent a year earlier.

• In Bakersfield, 5.1 percent of mortgages were delinquent by at least 30 days (including those in foreclosure) in July compared with 5.6 percent in July 2016, representing a decrease of 0.5 percentage points. Bakersfield mortgages in serious delinquency (90+ days past due) totaled 1.7 percent in July compared with 2.1 percent in July 2016. The foreclosure inventory rate for this July was 0.5 percent compared with 0.6 percent a year earlier.

• In metropolitan Sacramento, 2.6 percent of mortgages were delinquent by at least 30 days (including those in foreclosure) in July compared with 3.1 percent in July 2016, representing a decrease of 0.5 percentage points. Sacramento-Roseville-Arden-Arcade mortgages in serious delinquency (90+ days past due) totaled 0.9 percent in July compared with 1.2 percent in July 2016. The foreclosure inventory rate for this July was 0.2 percent compared with 0.3 percent a year earlier.

• In Modesto, 3.6 percent of mortgages were delinquent by at least 30 days (including those in foreclosure) in July compared with 4.2 percent in July 2016, representing a decrease of 0.6 percentage points. Modesto mortgages in serious delinquency (90+ days past due) totaled 1.1 percent in July compared with 1.5 percent in July 2016. The foreclosure inventory rate for this July was 0.3 percent compared with 0.4 percent a year earlier.

• In Merced, 3.6 percent of mortgages were delinquent by at least 30 days (including those in foreclosure) in July compared with 4.3 percent in July 2016, representing a decrease of 0.7 percentage points. Merced mortgages in serious delinquency (90+ days past due) totaled 1.0 percent in July compared with 1.5 percent in July 2016. The foreclosure inventory rate for this July was 0.3 percent compared with 0.4 percent a year earlier.

• In Madera, 4.6 percent of mortgages were delinquent by at least 30 days (including those in foreclosure) in July compared with 4.9 percent in July 2016, representing a decrease of 0.3 percentage points. Madera mortgages in serious delinquency (90+ days past due) totaled 1.6 percent in July compared with 1.9 percent in July 2016. The foreclosure inventory rate for this July was 0.5 percent compared with 0.5 percent a year earlier.

• In Fresno, 4.3 percent of mortgages were delinquent by at least 30 days (including those in foreclosure) in July compared with 4.8 percent in July 2016, representing a decrease of 0.5 percentage points. Fresno mortgages in serious delinquency (90+ days past due) totaled 1.3 percent in July compared with 1.7 percent in July 2016. The foreclosure inventory rate for this July was 0.3 percent compared with 0.5 percent a year earlier.

Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market, CoreLogic says. To monitor mortgage performance comprehensively, CoreLogic says it examines all stages of delinquency as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next.

The national rate for early-stage delinquencies, defined as 30-59 days past due, was 2 percent in July, down slightly from 2.3 percent in July 2016. The share of mortgages that were 60-89 days past due in July was 0.7 percent, unchanged from July 2016. The serious delinquency rate (90 days or more past due) declined from 2.5 percent in July 2016 to 1.9 percent in July and remains near the 10-year low of 1.7 percent reached in July 2007. Alaska was the only state to experience a year-over-year increase in its serious delinquency rate.

“While the U.S. foreclosure rate remains at a 10-year low as of July, the rate across the 100 largest metro areas varies from 0.1 percent in Denver to 2.2 percent in New York,” says Frank Nothaft, chief economist for CoreLogic. “Likewise, the national serious delinquency rate remains at 1.9 percent, unchanged from June, and when analyzed across the 100 largest metros, rates vary from 0.6 percent in Denver to 4.1 percent in New York.”

Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30-days past due was 0.9 percent in July, down from 1.1 percent in July 2016, it says. By comparison, in January 2007 just before the start of the financial crisis, the current-to-30-day transition rate was 1.2 percent and it peaked in November 2008 at 2 percent.

“Even though delinquency rates are lower in most markets compared with a year ago, there are some worrying trends,” says Frank Martell, president and CEO of CoreLogic. “For example, markets affected by the decline in oil production or anemic job creation have seen an increase in defaults. We see this in markets such as Anchorage, Baton Rouge and Lafayette, Louisiana where the serious delinquency rate rose over the last year.”

http://www.centralvalleybusinesstimes.com/stories/001/?ID=33430

Wonderful Spec Project Underway in Central Valley

The 1 million-square-foot building, which will sit within the 1,600-acre Wonderful Industrial Park in Shafter, Calif., is one of only a few developments of its kind in the market.
4100 Express Ave., Shafter, Calif.
4100 Express Ave. in Shafter, Calif.

The call for premier industrial space in California’s Central Valley is growing louder, and Wonderful Real Estate, formerly Roll Real Estate, is responding with a new project. The company is in the midst of developing a 1 million-square-foot speculative industrial property in Shafter, Calif., roughly 130 miles north of Los Angeles and 100 miles south of Fresno in the Central Valley.

It’s the right time and the right place. “Strengthening market fundamentals, growth of e-commerce and awareness of the Central Valley industrial market has given us the confidence to go spec,” Joe Vargas, president of Wonderful Real Estate Development, said in a prepared statement. WRE is constructing the new building at 4100 Express Ave., within the company’s 1,600-acre, rail-served Wonderful Industrial Park. The project holds the distinction of being one of just a few million-square-foot-plus spec industrial developments currently underway with 40-foot clear height, oversized large truck courts and access to four major U.S. Ports (Los Angeles, Long Beach, Hueneme and Oakland).

4100 Express’s location will provide users with even more than cutting-edge accommodations and coveted transportation infrastructure; it will also offer access to an ample pool of labor that is both qualified and committed. WRE notes that existing tenants at Wonderful Industrial Park consistently record annual labor turnover rates in the low single-digit range.

Central Valley takes center stage

Solid positive net absorption and strong rental growth have characterized the Central Valley industrial market for the last two years, according to a second quarter report by commercial real estate services firm JLL, which spearheads leasing activity at Wonderful Industrial Park. And even in the face of new development, the vacancy rate remains a respectable 5.3 percent and is expected to head downward. There’s something about the Central Valley.

“Demand is coming from primarily big-box users looking to capitalize on real estate costs and outbound distribution. Between super-regional distribution plays and e-commerce distribution the Central Valley is cementing itself as a Tier 1 distribution market within the Southwest U.S.,” Mac Hewett, vice president with JLL, told Commercial Property Executive.

WRE expects 4100 Express to be ready to welcome its first tenants in March 2018.

Image courtesy of Wonderful Real Estate

https://www.cpexecutive.com/post/wonderful-spec-project-underway-in-central-valley/