STOCKTON, CA—A recent industrial purchase makes for the fourth area acquisition in the last year for Westcore Properties. The company recently acquired the 158,400-square-foot industrial building located at 3834 Duck Creek Dr.
The freestanding cross-load building has appeal for expanding local companies and those relocating from the Bay Area. Its existing improvements provide for immediate occupancy in a market where inventory is at an all-time low.
“The market is tight with very limited vacancy,” said Peter Mette, director of acquisitions at Westcore Properties. “We expect a property of this size that can efficiently accommodate one or two tenants will have broad tenant appeal.”
Mette recently discussed the appeal of the Central Valley, the challenge of locating industrial product and investment strategy in this exclusive.
GlobeSt.com: You've acquired four properties in Central Valley in the past year. Why are you bullish about this market?
Mette: The market is healthy. Stockton and the entire Central Valley, like all of the West Coast industrial markets, are seeing robust demand across industry. The Central Valley has seen an influx of last-mile, e-commerce tenants in addition to users from the Bay Area seeking rent savings. Subsequently, demand for industrial space is strong and should remain so. As the online retail sector continues to grow, we anticipate industrial real estate remaining a high-performing investment sector.
GlobeSt.com: The industrial real estate market is hot. How do you still find deals that make financial sense?
Mette: We've prioritized cultivating relationships with brokers who are active in the markets we're targeting. We make sure they know about our acquisition criteria and how quickly we can move. Many of our acquisitions are made off-market because savvy brokers often know precisely which investors are best matched to a particular asset. Abbreviating the marketing phase of a sale can save money for all parties involved.
GlobeSt.com: New industrial product is coming to the Central Valley market. How will this affect your investments and future acquisition activity?
Mette: Most of the new product coming to market is geared to users with very large space requirements. Our investment sweet spot is multi-tenant industrial, a product type that usually includes multiple spaces better suited for small to mid-sized users. Fortunately, tenant demand is healthy across tenant sizes.
GlobeSt.com: How do you think your investment strategy might change during the next couple of years?
Mette: We are a value investor constantly seeking inefficient asset pricing. We have a long track record of being nimble and able to shift our investment strategy as we anticipate trends in the market. Historically, we have shifted our investment balance between office and industrial product based upon market demand and opportunity. So, our investment strategy is constantly evolving.
STOCKTON, CA—A recent industrial purchase makes for the fourth area acquisition in the last year for Westcore Properties. The company recently acquired the 158,400-square-foot industrial building located at 3834 Duck Creek Dr.
The freestanding cross-load building has appeal for expanding local companies and those relocating from the Bay Area. Its existing improvements provide for immediate occupancy in a market where inventory is at an all-time low.
“The market is tight with very limited vacancy,” said Peter Mette, director of acquisitions at Westcore Properties. “We expect a property of this size that can efficiently accommodate one or two tenants will have broad tenant appeal.”
Mette recently discussed the appeal of the Central Valley, the challenge of locating industrial product and investment strategy in this exclusive.
GlobeSt.com: You've acquired four properties in Central Valley in the past year. Why are you bullish about this market?
Mette: The market is healthy. Stockton and the entire Central Valley, like all of the West Coast industrial markets, are seeing robust demand across industry. The Central Valley has seen an influx of last-mile, e-commerce tenants in addition to users from the Bay Area seeking rent savings. Subsequently, demand for industrial space is strong and should remain so. As the online retail sector continues to grow, we anticipate industrial real estate remaining a high-performing investment sector.
GlobeSt.com: The industrial real estate market is hot. How do you still find deals that make financial sense?
Mette: We've prioritized cultivating relationships with brokers who are active in the markets we're targeting. We make sure they know about our acquisition criteria and how quickly we can move. Many of our acquisitions are made off-market because savvy brokers often know precisely which investors are best matched to a particular asset. Abbreviating the marketing phase of a sale can save money for all parties involved.
GlobeSt.com: New industrial product is coming to the Central Valley market. How will this affect your investments and future acquisition activity?
Mette: Most of the new product coming to market is geared to users with very large space requirements. Our investment sweet spot is multi-tenant industrial, a product type that usually includes multiple spaces better suited for small to mid-sized users. Fortunately, tenant demand is healthy across tenant sizes.
GlobeSt.com: How do you think your investment strategy might change during the next couple of years?
Mette: We are a value investor constantly seeking inefficient asset pricing. We have a long track record of being nimble and able to shift our investment strategy as we anticipate trends in the market. Historically, we have shifted our investment balance between office and industrial product based upon market demand and opportunity. So, our investment strategy is constantly evolving.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
