September 16, 2016
By Dennis Kaiser
Connect Media is gearing up for our second annual Connect Inland Empire conference on October 6th. Here’s where to find out more details and register. To gain a better perspective of what’s happening in the Inland Empire, we asked Stirling Development’s Andrea Wachter to give us an update on market activities, as well as Stirling’s Southern California Logistics Centre (SCLC) in Victorville, CA. Here’s her insights in our latest installment of 3 CRE Q&A.
Q: Can you provide a quick overview of what is happening at SCLC right now?
A: We’ve had consistent leasing activity at SCLC lately, resulting in a vacancy rate that is currently under 1%. Increasing demand for industrial space in the High Desert has primarily come from manufacturers looking to relocate to the area due to air quality requirements, low occupancy cost, and ample space for expansion that SCLC provides. We recently finished construction of a 444,000-square-foot building that was pre-leased to Newell Rubbermaid, as an expansion, and to Arden Products, who relocated to Victorville from Rancho Cucamonga. We are also currently in the planning stages for a 370,000-square-foot building, and have already received inquiries and positive feedback regarding our growing portfolio.
Q: What is the biggest challenge to attracting more users and development activity to SCLC?
A: Many owners/developers would agree that attracting potential tenants can be a challenge, especially when they don’t understand the opportunities in the High Desert. At Stirling, we like to think of our project as being in the Inland Empire North, and due to the sprawl of development, both brokers and tenants are starting to recognize Victorville as a great Inland Empire North location. Being in close proximity to the I-15, highway 395, and with the recent approval of the High Desert Corridor, which will be directly adjacent to SCLC, our project is a viable alternative to the higher-priced sites down the hill.
Q: As a marketing expert, what are the top three messages you think the commercial real estate industry should know?
A: 1. Occupancy cost can have a greater influence than location, when tenants choose where to relocate their businesses. SCLC offers the lowest total occupancy cost in the Inland Empire.
2. Providing assistance to tenants to ease their transition is key. SCLC is located within the Mojave Air Quality District, which is beneficial to manufacturers, and we have in-place infrastructure which can lower tenants’ costs while still having a Class A facility.
3. Tenants should think to the future for possible expansion opportunities. SCLC has many development sites still available, as well as expansion options for existing buildings, which will save tenants money in the long run, versus having to relocate.
For comments, questions or concerns, please contact Dennis Kaiser