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New State-of-the-Art Facility Planned by Prologis in Tracy
November 11, 2014
Prologis, the largest operator and developer of industrial real estate in the world, broke ground on a new state-of-the-art facility in Tracy, CA. At full build-out of 19 million square feet (1.8 million square meters), the park will be Northern California's largest master-planned park.
Prologis International Park of Commerce is located within a 60-mile radius of three international airports, the Port of Oakland, the Port of Stockton, BNSF intermodal and UP intermodal. Adjacent to I-5, I-205 and I-580, the facility provides customers with direct access to the Bay Area's growing population of 7.4 million.
“Clearly they’re confident of more of this coming,” said Jeffrey Michael, director of the Business Forecasting Center at University of the Pacific in Stockton [the September report by Prologis states 95 percent of the 585 million square feet of space in the company’s portfolio is occupied].
SFGate reports that
according to the forecasting center’s most recent report, there were more than 19,000 jobs in warehousing and transportation in San Joaquin County in 2011. That number has grown considerably in the area, with Amazon alone adding approximately 2,000 jobs at its fulfillment centers in Tracy and Patterson (Stanislaus County). “Some of the e-commerce fulfillment jobs are classified as retail (electronic), so the warehousing/distribution data can understate the trend,” Michael told me.
“I think we’ll see a continuing flow eastwards,” said Michael Amman, CEO of San Joaquin Partnership, a public-private economic development consortium, who has been pitching Silicon Valley companies and opened an an office in Santa Clara. “I think we are at a pivot point,” said Amman, whose LinkedIn profile lists him as “Ambassador at Greater Silicon Valley,” and sports a tie bearing an image of the San Andreas Fault.
“It does make sense to speak of the Greater Silicon Valley,” said Russ Hancock, president of Joint Venture Silicon Valley in San Jose, who consults with Amman “We’re adjacent regions. The Bay Area is highly problematic in terms of costs, while the Central Valley has land, a hospitable policy, climate, and labor.
“We’ve been talking about it here, and talking to companies about what the Central Valley has to offer. The tech formula works.”