Opus launched its first project in the market this year. In July 2007, it bought a 474-acre site adjacent to a BNSF intermodal center from two local developers preparing for retirement and in April in broke ground on Opus Logistics Center–Stockton. Ultimately slated to have 8.2 million sf, it is the largest new industrial park in Northern California. The first phase includes three buildings totaling two million sf.

Finding a site was not easy, Little reports. "We have been watching the Central Valley industrial market for years trying to find a strategic way to enter the market," he says. "The difficulty is the supply of development parcels is fairly limited and the supply of very large parcels suitable for million-sf logistics facilities is extremely scarce."

But he acknowledges the relative shortage of development sites is a huge advantage for companies that do manage to get in because it limits competition, while Rasmussen admits that the limited supply of a land has been a major factor in preventing overbuilding and holding vacancies down to about 5%. "We have a handful of locations where a user could build or occupy in excess of 500,000 sf in the near term," the latter says. " There's probably five or six business parks that could accommodate users going forward."

Both men concede the shortage of land could create problems in the long run by making it difficult to meet the growing demand. But Little believes additional land eventually will be made available for industrial use. "We think other sites will be brought to market," he says, "but it will be some time before that occurs, either because of land use issues like zoning or infrastructure issues like water, sewer and roads."