Moving manufacturing operations up to the high desert will help drive occupancy for owners and the bottom line for users.
By Kelsi Maree Borland | April 09, 2019
SoCal Logistics Airport Will Be a Draw for Manufacturing and distribution users may be driving the demand for industrial product, but manufacturing users are still active in the Greater L.A. area and in need of space. The new 20 million square foot Southern California Logistics Airport in Victorville, which is currently under construction, could become a hub for manufacturing users—both driving occupancy at the project and at a more affordable price for manufacturing users.
“I think the logistics market in Southern California will not be overly affected by any one project. In a way, our project compliments the overall logistics market and also provides a meaningful bene t for those companies who have a manufacturing component to their business,” Dougall Agan, CEO at Stirling Development, tells GlobeSt.com. “While many people think manufacturing is quickly moving out of California, the State of California still maintains the highest number of manufacturers compared to all other states. Locally, the advantages of moving manufacturing out of the L.A. Basin up to the High Desert are numerous, and can be quickly analyzed in a cost of occupancy comparison to quantify bottom line results for prospective tenants.”
In addition to providing space in general for manufacturing users, the project also enables manufactures to grow their business in the same park. That is a rare characteristic in a Southern California industrial facility. “One facet of our project that has been extremely attractive for our existing and potential users is the abundance of land available to allow for future expansion and campus environments,” Brian Parno, COO at Stirling, tells GlobeSt.com. “For instance, Newell Brands has just completed an expansion of over 466,000 square feet at one of three buildings they occupy at SCLA, bringing their total occupancy at the project to over 1.4 million square feet with room to still grow and expand. Opportunities like that are very few and far between in Southern California and allow us to create solutions for tenants’ needs. Paired with our great relationships with the City of Victorville and the County of San Bernardino which aide in facilitating expedient timing for delivery on our deals, we have created a very pro-business atmosphere for users.”
The project has 20 million total feet for development, and it will likely be developed over the long-term. “We have another 20 million square feet that we plan to develop over the long term, so we see a steady progression of building our critical mass to a point where we believe this market will have a strong national identity; and be recognized as one of the strongest sub-markets in the country,” adds Agan.