Friday, November 28, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Forum highlights e-commerce industrial space

The Northern California Chapter of Certified Commercial Investment Member hosted its first broker forum of 2014 this week in Benicia.

The organization is a certification recognizing professionals who specialize in commercial and investment real estate. The forum provided an overview of the Solano County and Napa County commercial real estate markets and gave landlords, developers, brokers, city and county officials a chance to learn “what is hot” and “what is not” in Solano and Napa.

Here are some of our thoughts from the forum.

Kudos to Benicia for accommodating the event in the city-owned historic Clocktower building. It’s an interesting contrast when folks gather to talk mainly about “new industrial building development” while seated in a charming building constructed in 1859 from Benicia sandstone.

The forum’s first speaker, Garrick Brown, is the research director for Cassidy Turley Commercial Real Estate Services. He noted that today’s industrial users prefer new buildings because older industrial buildings can’t accommodate their needs. Brown further said that the current surge in demand for industrial space on a national level is primarily driven by e-commerce fulfillment centers for companies such as Amazon. The U.S. has an industrial inventory of more than 20 billion square feet. Amazon alone occupies more than 56 million square feet of industrial distribution space and hopes to increase its total to more than 90 million square feet within the next few years.

In 2013, more than 137 million square feet of industrial space was absorbed on a national level. This year is projected to be another banner year for the national industrial absorption trend line, with growth projected to cover more than 150 million square feet. Solano County has approximately 27 million total square feet of industrial space and Napa County has approximately 12 million square feet.

While many traditional brick-and-mortar stores are reducing their footprints, the need for e-commerce support infrastructure is growing. Even if one views the modern marketplace as a war between the “bricks” and the “clicks,” the most Web-dependent e-tailer still needs industrial space and well-located communities that can provide modern buildings will benefit from this growing market.

Large-scale buildings for distribution and warehousing are not new to the Fairfield market. The former Breuners’ Furniture Warehouse (aka Fibrebond) is still a Fairfield landmark, Meyer continues to operate its distribution center off Highway 12 and our readers may recall the 1 million-square-foot distribution center built for glass bottler Saint-Gobain Containers in the Tolenas Industrial Park near Travis. These were specialized buildings – would they be “new” enough to be suitable for the e-commerce distributors now dominating the market?

In addition to e-commerce, Brown noted that demand for industrial space in Solano County has been recently driven by the wine industry – so the Saint-Gobain building should be safe for now. Fairfield’s close proximity to Napa has benefited the local marketplace for industrial development. Demand for space to support the wine industry and allied specialty food products has exploded in the past couple of years. Wine is certainly in the “what’s hot” category today, and developers agree the 1 million square feet of flexible distribution space under construction on Cordelia Road is targeted to wine and food distributors who need access to Napa and Sonoma counties.

Brown is a very informative presenter and collects a lot of information about new development activity for retail, industrial and other sectors. If you like reading about what’s happening in any of those sectors, you might want to subscribe to his Bay Area Research Rant and get on his mailing list at Garrick.Brown@Cassidyturley.com.

U.S. Bank was also a presenter at the forum and touted its ability to provide loans for industrial projects as well as other business loans. GO-Biz, the state of California’s economic development arm, also presented at the forum and provided a wealth of information about new programs available to California businesses. The GO-Biz information included the California Competes Tax Credit program and the highly regarded sales and use tax exemption program available July 1, 2014. More information on these programs can be found at www.business.ca.gov.

The economic development divisions for the cities of Fairfield, Napa and Benicia also gave presentations at the forum, with each hyping why their city would be the place to invest. Of course we are biased about the benefits of investing in Fairfield, but this event gave attendees an excellent overview of the entire regional market and what is happening in local cities. The forum wrapped up with the panel of experts answering questions about the future of local industrial markets.

For those interested in ebbs and flows of the real estate market, the Northern California Chapter of CCIM Commercial Real Estate Market Forum is certainly worth attending each year. It allows the key players in the marketplace an opportunity to promote services, facilities and opportunities.

Economic Notes is an update from Fairfield City Hall written by Brian Miller and Karl Dumas of the Fairfield Planning and Development Department. Reach them at 428-7461 or email at kdumas@fairfield.ca.gov or bkmiller@fairfield.ca.gov.

Brian Miller and Karl Dumas

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • Recent Articles

  • Enter your email address to subscribe and receive notifications of new posts by email.

  • .

    Solano News

     
    Solano Turkey Trot draws 2,600 to college

    By Ryan McCarthy | From Page: A1 | Gallery

     
     
    Solano College student body to mark World AIDS Day

    By Maureen Fissolo | From Page: A3

     
    Il Fiorello schedules olive milling day

    By Susan Hiland | From Page: A3

    Movies just another course on Thanksgiving

    By Susan Hiland | From Page: A3 | Gallery

     
    Early Black Friday shoppers take advantage of deals

    By Susan Hiland | From Page: A3 | Gallery

    Eagle Scout project adds floating docks at Rockville Park

    By Susan Hiland | From Page: A4 | Gallery

     
    .

    US / World

    ‘Guardian angel,’ community join to give man home

    By The Associated Press | From Page: A1

     
    US celebrates Thanksgiving with parades, turkey

    By The Associated Press | From Page: A3 | Gallery

    Tons of marijuana seized in Central California

    By The Associated Press | From Page: A4, 4 Comments

     
    Gorilla death prompts San Francisco Zoo changes

    By The Associated Press | From Page: A4, 1 Comment

    Health agents still unpaid after plan’s rollout

    By The Associated Press | From Page: A4, 1 Comment

     
    California Burger King employee finds $100,000

    By The Associated Press | From Page: A4, 1 Comment

    At 1 month, US Ebola monitors finding no cases

    By The Associated Press | From Page: A5

     
    Families asked to host visitors for pope’s US trip

    By The Associated Press | From Page: A5

    Researchers discover ‘pre-cancers’ in blood

    By The Associated Press | From Page: A5

     
    For some, location of Brown’s hands irrelevant

    By The Associated Press | From Page: A6, 2 Comments

    Ferguson gives thanks after a quiet night

    By The Associated Press | From Page: A6

     
    35 arrested in Oakland after protest march

    By The Associated Press | From Page: A6, 1 Comment

    A glance at Ferguson: Then, now and the future

    By The Associated Press | From Page: A6, 1 Comment

     
    Colorado mastodon bones show ancient warmer Earth

    By The Associated Press | From Page: A7, 1 Comment

    Queen of crime writing PD James dies aged 94

    By The Associated Press | From Page: A10

     
    Ebola aid dogged by coordination lags in Guinea

    By The Associated Press | From Page: A10

    Taliban attack rocks upscale Kabul district

    By The Associated Press | From Page: A10

     
    Small quake rattles California wine country

    By The Associated Press | From Page: A12

    .

    Living

    Today in History: Nov. 28, 2014

    By The Associated Press | From Page: A2

     
    Community Calendar: Nov. 28, 2014

    By Susan Hiland | From Page: A2

    Poor health is no excuse for not behaving like a caring person

    By Kathy Mitchell and Marcy Sugar | From Page: A9

     
    Horoscope for Nov. 28, 2014

    By Holiday Mathis | From Page: A9

    .

    Entertainment

    Week in preview: Nov. 28 to Dec. 4, 2014

    By Amy Maginnis-Honey | From Page: B1

     
    Review: ‘Horrible Bosses 2′ doesn’t work

    By Jake Coyle | From Page: B2

    Review: ‘Madagascar’ spin-off hatches family fun

    By The Associated Press | From Page: B2 | Gallery

     
    Prison theater transforms Colombian inmates

    By The Associated Press | From Page: B2

    Singer John Mayer among ‘Late Late Show’ subs

    By The Associated Press | From Page: B2

     
    Reading Harry Potter gives clues to brain activity

    By The Associated Press | From Page: B3

    Talking songs with She & Him

    By Kim Durbin | From Page: B3

     
    Entertainment calendar Nov. 28, 2014

    By Amy Maginnis-Honey | From Page: B4

     
    Cosby testimony describes accuser’s spiked story

    By The Associated Press | From Page: B6

    .

    Sports

    College notebook: Many happy returns for Arizona’s Bondurant

    By Paul Farmer | From Page: B7 | Gallery

     
    Sherman’s big night leads Seattle past 49ers again

    By The Associated Press | From Page: B7, 1 Comment | Gallery

    Rookie quarterback Carr is Raiders’ silver lining

    By The Associated Press | From Page: B7

     
    US cities urged to keep price tags down for 2024

    By The Associated Press | From Page: B7

    5 investigated in FIFA WCup bid corruption probe

    By The Associated Press | From Page: B8

     
    Johnson shines in Detroit’s 34-17 win over Chicago

    By The Associated Press | From Page: B8

    Eagles roll over Cowboys 33-10 for NFC East lead

    By The Associated Press | From Page: B8 | Gallery

     
    Signups for Friday, Nov. 28, 2014

    By Paul Farmer | From Page: B10

    No. 9 UCLA must overcome Stanford for Pac-12 title

    By The Associated Press | From Page: B10

     
    .

    Business

    Kia’s ‘Soulful’ first electric car

    By Ann M. Job | From Page: C1

     
    Automakers aim to drive away car computer hackers

    By The Associated Press | From Page: C2

    OPEC keeps oil output on hold despite low prices

    By The Associated Press | From Page: B11

     
    Google’s latest: A spoon that steadies tremors

    By The Associated Press | From Page: B11

    3 Reasons holiday shoppers will spend cautiously

    By The Associated Press | From Page: B11

     
    .

    Obituaries

    Deanna L. Haines

    By Susan Hiland | From Page: A4

     
    Esther Ringler

    By Nancy Green | From Page: A4

    .

    Comics

    Zits

    By Daily Republic Syndicated Content | From Page: A8

     
    Pickles

    By Daily Republic Syndicated Content | From Page: A8

    Beetle Bailey

    By Daily Republic Syndicated Content | From Page: A8

     
    Sally Forth

    By Daily Republic Syndicated Content | From Page: A8

    Frank and Ernest

    By Daily Republic Syndicated Content | From Page: A8

     
    Get Fuzzy

    By Daily Republic Syndicated Content | From Page: A8

    For Better or Worse

    By Daily Republic Syndicated Content | From Page: A8

     
    Rose is Rose

    By Daily Republic Syndicated Content | From Page: A8

    Blondie

    By Daily Republic Syndicated Content | From Page: A8

     
    Baby Blues

    By Daily Republic Syndicated Content | From Page: A8

    Baldo

    By Daily Republic Syndicated Content | From Page: A8

     
    Wizard of Id

    By Daily Republic Syndicated Content | From Page: A8

    Garfield

    By Daily Republic Syndicated Content | From Page: A8

     
    Dilbert

    By Daily Republic Syndicated Content | From Page: A8

    B.C.

    By Daily Republic Syndicated Content | From Page: A8

     
    Peanuts

    By Daily Republic Syndicated Content | From Page: A8

    Word Sleuth

    By Daily Republic Syndicated Content | From Page: A9

     
    Sudoku

    By Daily Republic Syndicated Content | From Page: A9

    Crossword

    By Daily Republic Syndicated Content | From Page: A9

     
    Cryptoquote

    By Daily Republic Syndicated Content | From Page: A9

    Bridge

    By Daily Republic Syndicated Content | From Page: A9