Conor, Dayton Street Deliver 1.1 MSF California Industrial Property

Co-developers Conor Commercial Real Estate and Dayton Street Partners, along with their partner, an affiliate of Heitman, have completed a three-building, 1.1 million-square-foot speculative industrial property in Stockton, Calif. Facilities range from 121,680 to 833,280 square feet.

The partners announced the development, Central Industrial Center, in October 2021. Conor had acquired the 56-acre infill site in April 2021 from Ingredion.

The location at 1021 Industrial Drive has proximity to Interstate 5 and Highway 99. The property is 2 miles north of Stockton Metropolitan Airport, a major cargo hub for several shipping companies, and adjacent to the Union Pacific and BNSF rail yards.

The design-build team of McShane Construction Co. and Ware Malcomb provided construction and architectural services. Leasing is being handled by Thomas Davis, Robert Taylor, Daniel Davis and Ryan Davis, all of CBRE.

Central Industrial Center, up close

All three buildings feature skylights, ESFR sprinklers, high-capacity natural gas and electrical infrastructure, 60-foot speed bays and office space to suit. The facilities have been designed as multi-tenant assets with configurations as small as 60,000 square feet.

Specs include:

• Building 1: 135,200 square feet, front-load with a 32-foot clear height, 50-foot by 52-foot column spacing, 28  dock doors, two drive-in doors, 76 parking spaces and 24 trailer stalls.
• Building 2: 121,680 square feet, front-load with a 32-foot clear height, 50-foot by 52-foot column spacing, 25 dock doors, two drive-in doors, 76 parking spaces and 26 trailer stalls.
• Building 3: 833,280 square feet, cross-dock with a 40-foot clear height, 50-foot by 60-foot column spacing, 141 dock doors, four drive-in doors, 310 parking spaces and 198 trailer stalls.

A San Joaquin County submarket

Central Industrial Center and one build-to-suit property totaling 2.6 million square feet were the only industrial developments under construction in San Joaquin County in the second quarter of 2024, according to Colliers. Deliveries in the first six months of the year amounted to 1.5 million square feet.

The overall vacancy rate in San Joaquin County increased 10 basis points over the quarter to 7.4 percent, Colliers reported. However, in the Stockton submarket, the rate decreased 10 basis points to 9.1 percent during the second quarter. Tenant concessions have increased year-over-year with more landlords “getting creative to attract deals.”

In Stockton, one notable transaction was the acquisition of Stockton Commerce Center, a fully leased 655,976-square-foot warehouse and distribution facility. The property changed hands for nearly $72 million.