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4/16/18
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Retailer Dollar General agreed to a lease for an additional 240k sf within Tejon Ranch Commerce Center that will expand the discount retailer’s total footprint within the master-planned complex in Kern County to more than 850k sf. The value of the four-year lease was not disclosed.
In this latest transaction, Dollar General will occupy about half of a newly completed 480k sf building that features state-of the-art amenities including cross-dock loading, 55 dock-high loading doors, 36-foot ceilings (clear height), a 7-inch thick concrete floor slab, and an ESFR-certified sprinkler system. Another 240k sf remain available for lease in the same building that Dollar General plans to occupy.
Tejon Ranch Commerce Center is a 1,450-acre master planned, warehouse and distribution center located at the interchange of the I-5 and Hwy 99, two of the state’s major surface transit hubs for freight hauling and distribution of products to urban logistics centers, wholesalers and retailers. The project is located less than 90 minutes from Downtown Los Angeles, making the location ideal for distribution users. Dollar General will use its new and expanded facility to more efficiently distribute products to its many stores throughout California and the Western US.
Dollar General will be in good company at the master-planned development, located about an hour north of Los Angeles and just 30 miles from the Kern County municipality of Bakersfield. IKEA, Famous Footwear and Caterpillar are just a few of the national credit tenants occupying large warehousing and distribution space at the center.
Property owner Tejon Ranch Co and development partner Majestic Realty were represented by a Colliers team composed of John DeGrinis, SIOR, Patrick DuRoss, SIOR, and Jeff Abraham, SIOR, all based at the brokerage firm’s Los Angeles-North office in Encino.
“In addition to the availability of new industrial space near one of the nation’s largest population centers, Dollar General and other national credit tenants who are occupying space here are attracted by the large available work force within Kern County,” said DeGrinis. “As the problem of finding suitable workers intensifies in many outlying areas of Southern California where there are few, if any, commuter options other than driving, commuting distance to other distribution centers in suburban and ex-urban locations in the five-county region that makes up the Greater Los Angeles Basin continues to worsen. Kern County has an untapped reservoir of well-trained, eager and commute-weary workers seeking full-time employment near their homes with the companies occupying space at Tejon Commerce Center.”
Labor availability is a strong benefit of the region, DeGrinis noted, with almost 4,000 workers already employed at the Commerce Center. The average ratio of applicants to job openings is about 10 to 1, noted DeGrinis.
“Since demand for industrial properties with state-of-the-art warehousing and distribution facilities has far outstripped supply throughout Southern California, and with vacancy rates hovering near zero percent during this watershed economic period, it made perfect sense for this particular client to expand its presence here,” said DeGrinis. “Not only is Tejon Ranch Commerce Center located within easy reach of the L.A. basin and its monumental population base, but it’s also accessible to every other part of the state where Dollar General has stores.”
In total, Tejon Ranch Commerce Center has nearly 16 msf of entitled space available for sale, lease, or build-to-suit, with sites ranging from 20k sf to more than 2 msf. Additionally, the industrial sites at TRCC are included in Foreign Trade Zone No. 276, noted DeGrinis, which makes companies locating at the center eligible to apply for tax rebates and other incentives being offered by Kern County.
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