Commercial Real Estate Fresno California - PDF

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                                                                                      REAL ESTATE REVIEW & FORECAST                                                                    in the valley, such as Select Build’s 600,000 sf facility, US Gypsum’s 590,000 sf
 WEST COAST TRANSPORTATION HUB                                                                                                                                                         facility and GAS’s planned 590,000 sf roofing materials facility. Aerospace is
                                                                                        CENTRAL CALIFORNIA CONTINUES TO BOOM! Not just in population,
                                                                                                                                                                                       clustering in the high desert with companies like Xcor and Scaled Composites.
                                                                                      which has been tracking at a rate of four to five percent for the past few years, but
                                                                                      now industries and commercial businesses are finding Central California is ideal for             FOOD PROCESSING
                                                                                      expansion.                                                                                         The Central Valley of California remains one of
                                                                                         “The commercial sector is expanding at a record pace,” explains Duane Keathley,               the nation’s richest agricultural areas. The vitality
                                                                                      Director of Commercial Development at CB Richard Ellis, “faster than I’ve seen in                and variety of crops make the region a natural
                                                                                      more than 20 years.”                                                                             choice for every facet of food processing. Many
                                                                                                                            “I believe we are in a development boom phase              of the world’s largest food manufacturers are in
                                                                                                                          for industrial buildings” says Lou Ginise, Sr. VP of         the region: including the world’s largest ice cream
                                                                                                                          Relations at Grubb & Ellis/Pearson Commercial in             factory, Dreyer’s Grand Ice Cream; Leprino Foods’
                                                                                                                                                                                       mozzarella cheese facility; Constellation Brands’       Marquez Brothers Int’l., Kings County
                                                                                                                          Fresno. More and more businesses are recognizing the
                                                                                                                          advantages of doing business in Central California.          wine; and California Tomato Machinery’s new facility. Food dehydration is a
                                                                                                                          Advantages like lower labor costs, excellent highway         growing industry with the recent locations of Zymex, in a 214,000 sf facility, and
                                                                                                                          and rail access, and local governments with pro-             Sensient Technology Corp. Cheese and Tomato Processing continue to cluster
                                                                                    Tejon/Rockerfeller Spec., Kern County
                                                                                                                          business attitudes.                                          with new facilities for J.G. Boswell and Marquez Brothers. California cows are
                                                                                         While California home values surged then dropped, real estate values in Central               happy about the 300,000 sf milk processing facility and bottled water continues
                                                                                      California remain some of the most affordable on the West Coast.                                 to be big with Niagara Bottling’s new 162,000 sf plant.
     MARKET UPDATE                                                                       “The residential downturn has unfairly colored the rest of the market,” explains              BACK OFFICE
                                                                                      Wayne Kress of CB Richard Ellis. “The shift we’ve started to notice is so many                      Central California is ideal for regional offices, call centers and other labor
POPUL ATION GROW TH                                                                   inquiries from regional and national markets wanting to relocate into our market, it’s           intensive operations like Cingular, Cigna Health Care and State Farm, each
 	                           1990	            2000	        2005	           2007       the most we’ve had since 2002. As a result we’re really bullish about the immediate              employing more than 1,000 workers. They have discovered the value of doing
 California	            29,950,111	      33,871,648	   33,889,712	     37,662,518     future for the industrial sector.”                                                               business in Central California, providing their employees with a high quality of
 Fresno	County	           671,660	          799,407	     862,600	         917,515    DISTRIBUTION                                                                                      life. Recent expansions include Blue Shield with a 200,000 sf facility and 950 new
 Kern	County	              549,219	         661,645	      724,900	        801,648      California’s Central Valley geography allows                                                    people and the 300-person telecom relay service established by Communications
 Kings	County	            101,809	          129,461	      141,400	        151,381    valuable North-South and East-West transportation                                                 Services for the Deaf. Educational facilities have also been cropping up, with
 Madera	County	             89,014	         123,109	      135,300	        148,721    opportunities. Don Little of Opus Real Estate says                                                a new 200,000 sf College and UC campus in Merced, and a new Chapman
 San	Joaquin	County	      480,628	          561,152	      654,025	        679,687    the Central Valley has become a focal point for major                                             University facility to serve the valley.
 Stanislaus	County	       370,522	          445,905	      504,478	        521,497
                                                                                     national and international companies seeking large                                                HEALTH AND BIOTECH
 Merced	County	            179,812	         210,554	      232,100	        232,100                                                              VF Distribution Center, Tulare County
                                                                                     scale distribution hubs. “It is driven by global supply                                             Health and Biotech is an emerging industry in Central California prompting
 Tulare	County	           313,897	          368,021	     396,800	         429,006
                                                                                     chain dynamics, a central location in the state, and access to ports, rail and highways.”         development of new technology parks in Clovis, Merced and Tulare Counties.
INDUSTRIAL LEASE RATES (50,000 sq. ft. plus)                                         The most active companies are those that provide finished goods to consumers and                  For example, Westfalia Separator, Sanitec and JIT Manufacturing have recently
 Bakersfield	       $0.25–0.40	NNN                                                   business. This is evident by recent locations of mega-facilities by Costco, Longs, Kohl’s,        added device assembly operations and The Children’s Hospital in Madera has a
 Fresno	            $0.28–0.40	NNN                                                   and a proposed million sf Wal-Mart distribution facility. VF Outdoor, Inc. leased a               planned 600,000 sf Oncology Unit.
 Hanford	           $0.15–0.35	NNN                                                   million square feet, joining GAP and IKEA in the million sf club along with Target’s
 Madera		           $0.34–0.55		NNN/Gross                                                                                                                                              RENEWABLE ENERGY
                                                                                     1.7 million square foot facility.                                                                   With California’s push to develop renewable
 Merced	            $0.30–0.55	NNN
 Modesto	           $0.28–0.31	NNN                                                                                      M ANUFACTURING                                                 energy, several new facilities are cropping up
 Stockton	          $0.32–0.38	NNN                                                                                        With Central California’s low operating costs and            ranging from ethanol to bio-diesel to solar and
 Visalia		          $0.24–0.40	NNN                                                                                      proximity for West Coast distribution, manufacturing           wind. Included are a half dozen new ethanol
INDUSTRIAL SALES PRICES                                                                                                 continues to grow. Studies have shown a growing                manufacturing plants, like the two new Ethanol
 $25–$80	sq.ft.,	depending	upon	amenities	                                                                              number of companies are moving inland from the                 plants by Pacific Ethanol, another by Phoenix Bio
                                                                                                                                                                                                                                              Pacific Ethanol, Inc., Madera County
                                                                                                                        Southern California and Bay areas rather than moving           Industries and Cilion, to new Crimson Resource
INDUSTRIAL BASE AND VACANCY                                                                                             out of state. Much of the new                                          Management and Silicon Valley bio-diesel facilities. Ecosystem Solar
 	            Total	Base	(sq.ft.)	 Vacancy	(sq.ft.)	                 Vacancy	Rate   NCI Buildings, Mfg., Merced County  development supports the Ag and                                        Electric Corp recently announced plans for a $100 million dollar solar
 Bakersfield	        23,000,000	         1,150,000	                         5.0%	                                       Food markets, like St. Gobain’s                                        plant to be built on 40-acres while Cleantech America announced plans
 Fresno	             54,853,221	         2,797,514	                          5.1%    million sf glass plant, Plastipak’s 180,000 sf packaging facility and                                     for an 80 megawatt facility.
 Madera	              4,000,000	            60,000	                         1.5%     Quality Container’s composite can facility. Irrigation Technology
                                                                                                                                                                                                                                   CONTACT INFORM ATION
 Merced	              3,500,000	           140,000	                         4.0%     companies like Prinsco who sited a new 50,000 sf facility, join
 Modesto	            72,000,000	         2,520,000	                         3.5%     EuroDrip and a cluster of other Ag Tech companies in the region. Kyoho Manufacturing of California,                                           Jennifer Faughn, Business Development Officer
 Stockton	           90,000,000	         4,050,000	                         4.5%     Construction material companies have found an affordable home          San Joaquin County                                                     Phone: 888-998-2345 •
 Visalia	            16,000,000	           320,000	                         2.0%
          SUCCESSFUL PROJECTS • 2007
                   Company                            Type                          Location           Sq. Ft.    Employees
                   Costco (Expansion)                Distribution                   San Joaquin 1,085,000             500
                   VF Outdoor, Inc.                  Distribution Center            Tulare          1,000,000         300
                   Walmart                           Distribution Center            Merced          1,000,000         900
                   Longs Drugs                       Distribution Center            Stanislaus        850,000         500
                   Ferguson Enterprises              Construction Materials         San Joaquin       650,000         170
                   Kohls                             Distribution Center            Stanislaus        575,000         200
                   Spectrum Brands                   Distribution Center            Tulare            500,000          40

                   JC Penney                         Retail                         San Joaquin       436,098         100+
                   Ghiradelli Chocolate              Candy Distribution             San Joaquin       294,429         150
                   Oneida                            Distribution                   Kern              244,000          90
                   Sally Beauty Holding              Beauty supplies                Fresno            200,000         150
                   Lowes                             Retail Distribution            San Joaquin       240,000         150
                   UPS                               Distribution Center            Fresno            200,000         200
                   East Bay Tire Co.                 Distribution Center            Fresno              82,000         50
                   Heilind Electronics               Distribution Center            Tulare            103,000      50-125
                   Patterson Logistics               Distribution Dental Products   Tulare            100,000          30
                   MCS Industries                    Distribution Picture Frames    Tulare            100,000          50
                   Formica                           Distribution                   Kern                98,000         45
                   Saint Gobain                      Glass Bottles                  Madera          1,050,000         370
                   SelectBuild                       Mfg/Construction Svcs.         Kings             600,000         600
                   U.S. Gypsum Co.                   Construction Materials         San Joaquin       590,000         170

                                                                                                                                                            5401 Business Park South, Suite #219
                   GAS                               Mfg Roofing Materials          Fresno            525,000          80

                                                                                                                              Central California Economic
                   Simpson Strong Tie                Construction Materials         San Joaquin       400,000         200

                                                                                                                              Development Corporation
                   Fastenal                          Fasteners                      Stanislaus        300,000         200
                   Kyoho Manufacturing of CA         Auto Parts                     San Joaquin       292,800         290

                                                                                                                                                            Toll Free 888-998-2345
                   Christy Concrete                  Concrete Vaults                Madera            290,000     100-300

                                                                                                                                                            Bakersfield, CA 93309

                   Plastipak                         Packaging Materials            Stanislaus        180,000         150

                   Central Spring, Inc.              Automotive Parts               San Joaquin       104,000          15
                   Global Modular                    Modular Classrooms             Madera              89,560         40
                   Pacific Lifetime LLC              Synthetic Lumber               Kings               80,000         90
                   Viscotec USA                      Plastics                       Tulare              80,000         45
                   Quality Container                 Composite Cans                 Madera              75,000         20

                                                                                                                                                                                                   REAL ESTATE UPDATE
                   Euro Drip                         Irrigation Products            Madera              65,000         50
                   Tuff Stuff Products               Plastics                       Tulare              65,000      20-30
                   Aisin Manufacturing of CA         Automotive Parts               San Joaquin         59,850         63
                   84 Lumber Company                 Building Materials Co.         Tulare              56,000         30
                   California Dairies
                                                     Milk Processing
                                                     Food Dehydration Co.
                   Niagara Bottling LLC              Bottled Water                  San Joaquin       162,000         220
                   SunnyGem                          Food processing                Kern              100,000         100
                   Carmi Flavors & Fragrances        Flavors/Fragrances             Kings             100,000         300
Food Processing

                   Blue Diamond                      Almonds                        Stanislaus        100,000         100
                   Villa Park Ochards                Citrus Packing                 Tulare              96,000         90
                   J.G. Boswell Company              Tomato Processor               Kings               77,000        150
                   MolliCoolz                        Novelty Ice Cream              San Joaquin         53,670        100
                   Sensient Dehydrating              Food Dehydration               Merced              52,000          8
                   Premier Bakers                    Commercial Bakery              Stanislaus          50,000         45
                   Sorting Solutions                 Almond Processing              Merced              40,000         20
                   Garuda International              Nutritional Supplement         Tulare              40,000         40
                   Marquez Brothers                  Cheese Processing              Kings               35,000         30
                   Westfalia Separator               Bio Device                     Stanislaus          35,000         45

                   Sanitec                           Medical Device Mfg.            Merced              30,000         25
                   JIT Manufacturing                 Medical Device Assy.           Tulare              18,000        100
                   Blue Shield of CA                 Health Insurance               San Joaquin       200,000         950
                   Univ. of California, Merced       Education (Continuous)         Merced                    -         -

                   Merced College                    Education (New campus)         Merced            200,000         300
                   Chapman University                Education (New Campus)         Tulare              30,000          -
                   CCI                               Call Center                    Fresno                    -       150
                   Pacific Ethanol                   Ethanol                        San Joaquin       100,000          50
Renewable Energy

                   Silicon Valley BioDiesel          Bio fuels                      Fresno            500,000           -
                   Phoenix Bio Industries            Ethanol                        Tulare            10 acres         40
                                                                                                                                                                                  San Francisco

                   Cilion                            Ethanol                        Stanislaus          5 acres        45
                   Community Fuels                   BioDiesel                      San Joaquin        40,000          15
                   Great Valley Ethanol              Grain Ethanol                  Kings       60 million gpy         40
                   Pacific Ethanol                   Ethanol                        Madera              36,340         35
 Note: this list represents highlights and is not all inclusive.
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Description: Commercial Real Estate Fresno California document sample