Kevin Ramos, BOGC's chief investment officer, tells GlobeSt.com that Quaker currently distributes product from three different buildings in Tracy by way of a third-party logistics provider. Those operations are being shifted to his company's 745,000-sf building over the course of the next several months.As part of the lease deal, Quaker will have first right to expand into the rest of the building when the existing tenant vacates. The negotiated lease rate was not released, but the triple-net asking lease rate for the space before lease negotiations was $0.30 per sf per month.
Tim O'Rourke, Mike Fowler and Tom McCarthy with The Staubach Co. represented Quaker. Bob Taylor, first vice president with Buzz Oates Real Estate, negotiated on behalf of Central Valley LLC.
Quaker's new distribution center is located at 1566 N. MacArthur Dr. The building is in an industrial area of northeast Tracy where other major distribution center buildings have been developed.
Crate & Barrel recently committed to expanding its operations in the area by inking a 1.2-million-sf build-to-suit deal with ProLogis that will be ready for occupancy in 2009. The deal includes an option to expand the buildings by an additional 800,000 sf. Like Quaker, Crate & Barrel will vacate existing leaseholds to consolidate operations in the larger buildings while also increasing its overall leasehold in the market.
Industrial vacancy in the greater San Joaquin Valley market is in the high single digits, and slightly lower for big box industrial than the rest of the product. "There's a pretty good supply being brought forward that in the near term will exceed demand," he says, "but there's not much coming after it and there is still pretty good demand."
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