2008 Market Sector Overview
CENTRAL CALIFORNIA

Distribution

California’s Central Valley geography allows valuable North-South and East-West transportation opportunities. Don Little of Opus Real Estate says the Central Valley has become a focal point for major national and international companies seeking large scale distribution hubs. "It is driven by global supply chain dynamics, a central location in the state, and access to ports, rail and highways." The most active companies are those that provide finished goods to consumers and business. This is evident by recent locations of mega-facilities by Costco, Longs, Kohl’s, and a proposed million sf  Wal-Mart distribution facility.  VF Outdoor, Inc. leased a million square feet, joining GAP and IKEA in the million sf club along with Target’s 1.7 million square foot facility.

Manufacturing

With Central California’s low operating costs and proximity for West Coast distribution, manufacturing continues to grow. Studies have shown a growing number of companies are moving inland from the Southern California and Bay areas rather than moving out of state. Much of the new development supports the Ag and Food markets, like St. Gobain’s million sf glass plant, Plastipak’s 180,000 sf packaging facility and Quality Container’s composite can facility.

Irrigation Technology companies like Prinsco who sited a new 50,000 sf facility, join EuroDrip and a cluster of other Ag Tech companies in the region. Construction material companies have found an affordable home in the valley; such as Select Build’s 600,000 sf facility, US Gypsum’s 590,000 sf facility and GAS’ planned 590,000 sf roofing materials facility. Aerospace is clustering in the high desert with companies like Xcor and Scaled Composites.

Food Processing

The Central Valley of California remains one of the nation’s richest agricultural areas. The vitality and variety of crops make the region a natural choice for every facet of food processing. Many of the world’s largest food manufacturers are in the region: including the world’s largest ice cream factory, Dreyer’s Grand Ice Cream; Leprino Foods' mozzarella cheese facility; Constellation Brands' wine; and California Tomato Machinery’s new facility. Food dehydration is a growing industry with the recent locations of Zymex, in a 214,000 sf facility  and Sensient Technology Corp.  Cheese and Tomato Processing continue to cluster with new facilities for J.G. Boswell and Marquez Brothers. California cows are happy about the 300,000 sf milk processing facility and bottled water continues to be big with Niagara Bottling’s new 162,000 sf plant.

Back Office

Central California is ideal for regional offices, call centers and other labor intensive operations like Cingular, Cigna Health Care and State Farm, each employing more than 1,000 workers. They have discovered the value of doing business in Central California, providing their employees with a high quality of life. Recent expansions include Blue Shield with a 200,000 sf facility and 950 new people and the 300-person telecom relay service established by Communications Services for the Deaf. Educational facilities have also been cropping up, with a new 200,000 sf College and a new UC campus in Merced, and a new Chapman University facility to serve the valley.

Health and Biotech

Health and Biotech is an emerging industry in Central California prompting development of new technology parks in Clovis, Merced and Tulare Counties. For example, Westfalia Separator, Sanitec and JIT Manufacturing have recently added device assembly operations and The Children’s Hospital in Madera has a planned 600,000 sf Oncology Unit. 

Renewable Energy