LATHROP, CA—The Central Valley is becoming a viable option for numerous industrial tenants due to costs and logistics features. A recent example is NorCraft Cabinetry, which recently leased 38,988 square feet of warehouse space within the Crossroads Logistics Center. The landlord is Buzz Oates Real Estate.

This newly constructed 35-acre business park is located at the intersection of Nestle Way and Christopher Way at Crossroads Commerce Center. The class-A three-building industrial complex targets larger-sized logistics, transportation and manufacturing uses, with warehouses ranging in size from 103,000 square feet to 338,000 square feet of space. The park's tenants benefit from proximity to the greater Bay Area region, Port of Oakland, BNSF and Union Pacific intermodals. Other recent tenants within the park include Tesla Motors and Raymond Material Handling.

The NorCraft Cabinetry warehouse features six dock doors, grade-level loading and 32-foot clear height. Newmark Knight Frank/NKF director Shawn Klein represented NorCraft in the 62-month lease.

“More and more clients are asking about the Central Valley due to its reduced cost and the abundant labor force. This trend will continue as Bay Area costs continue to escalate and the ability to expand is more challenging,” said Klein. “If businesses don't have to be located in the immediate Bay Area, the Central Valley is an excellent alternative.”

In this exclusive, Klein recently discussed the Central Valley's appeal, with specific regard to Lathrop in terms of an industrial space choice.

GlobeSt.com: What made Lathrop such a beneficial choice for NorCraft?

Klein: NorCraft was able to gain almost double the amount of warehouse square footage in Lathrop than they would have been able to in the immediate Bay Area. Since they didn't have to be in close proximity to the Port of Oakland, where rents are significantly higher, this was a logical choice. Most of their employees live in the Central Valley. This new location now helps them with their once-difficult commute into the Bay Area.

GlobeSt.com: How do you see this region comparing to some of the other markets that are hot right now?

Klein: It is apparent by the large volume of large new industrial parks and warehouses being built, this will be an area that will continue to expand and thrive. Land and labor costs are less expensive, allowing landlords to offer a more competitive rent to their tenants.

GlobeSt.com: What do you see for the long term for this market? What will drive more activity there?

Klein: Low labor costs and markedly reduced rents compared to the Bay Area will make the Lathrop area and all of the Central Valley a more desirable area for companies to relocate. The expanding Internet fulfillment business along with a strong Bay Area economy and great freeway accessibility to major West Coast cities make this market a smart business choice.

Starting as a small regional manufacturer, Norcraft Cabinetry has evolved to become the fifth largest cabinetry producer in the United States with clients that include KB Homes and Pulte Homes. Norcraft creates glazed cabinets, kitchen cabinets, bath vanities, entertainment centers and wine racks/cabinets.