The growth of industrial projects around town may not be visible to most, but its impact has big meaning for ÃÛèÖÖ±²¥â€™s workforce.
Millions of square feet of such buildings are now operating or under construction and for every 100,000 square feet of space added, between 200 and 400 jobs are added, said local industrial broker Rob Glaser, with Picor.
He noted that logistics spaces, where parts and goods are stored for later distribution, add about 200 jobs for every 100,000-square-foot space.
That same size industrial project for manufacturing companies adds between 300 and 400 jobs.
“ÃÛèÖÖ±²¥ fills a certain void,†Glaser said. “That’s what good real estate does.â€
The low vacancy rate for industrial projects, around four percent over the past two years, is due to older buildings sitting empty.
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“In that vacancy, there is a high degree of functional obsolescence with space having low ceilings, lack of trailer storage, too much office, etc.,†Glaser said.
The new headquarters for The ILS Co. opened in April.Â
Because of that, some developers saw an opportunity to build state-of-the-art space to recruit companies to ÃÛèÖÖ±²¥ and it has paid off.
“This provides alternative to tenants who were finding it challenging to find space,†he said.
Recent examples of that investment include Dallas-based Lincoln Properties building a $75 million industrial project with warehouse and distribution space at 4150 E. Los Reales Road, near Alvernon Way.
Called I-10 International, the site will have 373,811 square feet in two warehouse/distribution buildings.
Oregon developers Schnitzer Properties invested $73 million in two industrial projects for small and mid-size manufacturers.
The Drexel Commerce Center is under construction near Drexel Road and ÃÛèÖÖ±²¥ Boulevard and the Corona Commerce Center, near Valencia Road and ÃÛèÖÖ±²¥ Boulevard.
Both will offer flexible leasing options with spaces ranging from 6,700 to 184,080 square feet.
The first phase of the I-10 International project will have amenity space for employees that includes shaded and landscaped areas, built-in barbecue equipment and seating for outdoor relaxing, dining and games.
And, most recently, an international distribution company, ILS Co., opened its U.S. headquarters in a 115,000-square-foot facility at 3780 E. Valencia Road.
ILS offers third-party logistics, warehousing distribution and import/export services.
Its new headquarters is one of the three new industrial buildings in the ÃÛèÖÖ±²¥ Commerce Center that was developed by .
Along with manufacturers, these projects support suppliers to multiple industries such as mining, aerospace, optics and automotive.
The Drexel Commerce Center, near Drexel and Country Club roads, will have 184,080 square feet in two buildings.
The city’s proximity to northern Mexico’s large manufacturing plants makes the region a draw.
“The strong relationship between ÃÛèÖÖ±²¥ and manufacturing in the state of Sonora, coupled with good access to the densely-populated areas of Southern California and Phoenix, position ÃÛèÖÖ±²¥ as a significant cog in the wheel of efficient and a relatively low-cost supply chain delivery of goods,†Glaser said. “You can’t force these things to happen, but when you can fill a need that there is in the community, you can do well.
“ÃÛèÖÖ±²¥ has done that and will continue to do that.â€
At 50, ÃÛèÖÖ±²¥ high-rise in midtown attracts bevy of new tenants
