Friday, November 21, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Bright signs in industrial building market

5 bizz buzz 1

Construction crews work on a new warehouse next to Encore Glass in Fairfield, Friday. Colliers Report says there is a resurgence in industrial construction activity in the area. (Aaron Rosenblatt/Daily Republic)

By
From page A6 | May 05, 2014 |

FAIRFIELD — Colliers International sees a resurgence of industrial construction activity in Solano and Napa counties after a five-year lull.

The largest project completed in the first quarter of 2014 was in Fairfield. Buzz Oates of Sacramento built a 318,401-square-foot warehouse and leased it to Encore Glass, which provides bottles and packaging for the wine industry.

Buzz Oates is building next door a 473,136-square-foot warehouse and 177,000-square-foot warehouse for Saxco Glass. The two projects are located on Cordelia Road west of Chadbourne Road.

Despite such construction, the industrial vacancy rate for Solano and Napa counties in the first quarter increased slightly from 7.3 percent to 7.4 percent, according to Colliers International’s Fairfield office.

But Fairfield saw its industrial vacancy rate fall for the fifth consecutive quarter, from 4.4 percent to 4.2 percent. Among the activity, Montour Properties bought a 25,150-square-foot warehouse at 750 Link Road for $2.7 million, the Colliers report said.

Vacaville saw its vacancy rate fall from 9 percent to 6 percent. Icon Aircraft leased a 137,940-square-foot warehouse at 2141 Beechcraft Road. Pacific Cycle expanded by 41,250 square feet and occupies 177,000 square feet at 400 Crocker Drive. North Bay Distribution expanded by 37,620 square feet and occupies more than 100,000 square feet at 2131 Beechcraft Road.

But Napa saw its rate increase from 2.1 percent to 6.1 percent, largely because 175,362 square feet of space in three buildings formerly occupied by Dey Labs went vacant. Napa County bought the property in December 2013 and plans to occupy the office portions, the Colliers report said.

While much of California is experiencing a drought, Fairfield’s exceptional water quality and availability and sewer capability should keep drawing food and beverage users and other industries, the report said.

“Solano County is well positioned for future commercial real estate expansion as a transportation hub for local, national and international business,” the Colliers report said.

In the office market, the vacancy rate for Solano and Napa counties increased from 20.4 percent to 20.9 percent during the first quarter, the report said.

Fairfield’s rate rose from 26 percent to 26.3 percent. Solano County renewed its office leases for 60,324 square feet at 425, 427, 431 and 435 Executive Court in Fairfield Corporate Commons. The state leased 10,417 square feet at 324 Campus Lane in Fairfield Corporate Commons.

“While there are occasional glimmers of light in the region’s office market, overall activity remains modest despite the greater overall economic recovery,” the report said.

Do you have a Biz Buzz item? Reach Barry Eberling at 427-6929, or beberling@dailyrepublic.net. Follow him on Twitter at www.twitter.com/beberlingdr.

Barry Eberling

Barry Eberling

Barry Eberling has been a reporter with the Daily Republic since 1987. He covers Solano County government, transportation, growth and the environment. He received his bachelors of art degree from the University of California, Santa Barbara and his masters degree in journalism from the University of California, Berkeley.
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  • AnonMay 05, 2014 - 8:27 am

    Good article. Lower living costs in Solano compared with Berkeley or San Francisco make Solano an ideal location to rent commercial real estate. People seem to forget. The repeated over building results in huge vacancies during the down years. Good income in good years, but its tough in the bad years. Residential real estate development is more stable - everyone has to live somewhere right?

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