447,740-square-foot industrial facility
under construction at its Southern
California Logistics Centre in Victorville.
Arden Cos., a leading US manufacturer
of outdoor furniture, leased 211,000
square feet of the space, and Newell
Brands, a long-time tenant at the Victorville
development, took an additional 233,740
square feet. “Within three weeks of starting
construction, we had offers for the balance
of the space,” says Parno.
Before the recession, few people talked
about launching manufacturing projects
in this high desert region, he adds, but
developers in the past few years, not just
Stirling, have shown a lot of interest. There is already more manufacturing in CA than any other state, he points out, and its huge
population ensures it will continue growing. “It makes sense to be
close to your customers,” especially these days, when customers
demand rapid delivery.
And for municipalities, attracting manufacturing operations will
be a key component in deepening any economic recovery.
“Manufacturing jobs are job creators themselves,” says Parno. “It
spins off multiple other jobs in warehousing and distribution.” This
is more important than ever, as companies increasingly prefer to
cut costs by doing manufacturing, distribution and logistics under
one roof. “We’re really starting to fully grasp the impact manufac-
turers have. But developers need to do a better job of marketing
strategy and thinking about ways to attract manufacturers and
ensuring they have a sustainable model.”
This northern portion of the Inland Empire “is still an emerg-
ing market,” with about 17 million square feet of space. But the
vacancy rate is next to nothing, and with demand in the submar-
ket at a historic high, Parno expects to see a great deal of devel-
opment in the future. “There are very compelling reasons to
consider the High Desert,” especially its abundant land and
dramatically lower costs. He estimates the total cost of occu-
pancy is about 25% to 30% lower here than elsewhere in the
Inland Empire region. Stirling plans to break ground on a new
building of about 400,000 square feet, and expects to lease it
GE Oil & Gas recently decided to fully occupy this 510,443 square foot spec in Jacksonville’s Cecil
Commerce Center, developed by Hillwood Development, and bring about 500 high-skilled jobs to the city.