By Jon Peterson
Denver-based DCT Industrial Trust has received final approvals on its 795,000 square foot industrial project in Tracy located at 8450 West Arbor Avenue. The publicly traded real estate investment trust is calling the project DCT Arbor Avenue. The company declined to comment on the total cost of the project.[contextly_sidebar id=”Yd2Ev8ChKlmrSv0hZFYncWGafVX23ZYh”]“We think that this project is in a great location as its close to the I-205 Freeway. This would allow tenants to move their products around on a regional basis. We feel very good about this project and where we are in the market cycle,” says David Haugen, a vice president with DCT. He covers the Northern California region for the company and works out of the firm’s regional office in Emeryville.
This development is considered to be part of the San Joaquin Valley industrial market. “This region is very tight from an occupancy standpoint. The overall vacancy for this region is in the low single digits and demand for new space is strong,” said Haugen.
DCT is planning to start this project on a speculative basis. “Our thinking with this development is that we would start construction sometime during the first quarter. The project should take around seven months to complete,” said Haugen.
The developer is looking to design the building in a way that it could be occupied by a single user or multiple tenants. Leasing on the property will be run by the Stockton office of Colliers International, and the listing agent is Mike Goldstein, executive managing director. This project covers 40 acres of land.
This project will have plenty of parking spaces to accommodate the tenant or tenants in the property. “The current code for this kind of project requires 331 parking spaces. We are planning to more than double that with us providing around 679 spaces,” said Haugen.
This project should provide the city of Tracy additional job growth opportunities. “My guess would be that our project would add 300 to 600 permanent jobs to the community and some construction jobs while the property is being developed,” said Haugen. Much of the City of Tracy’s jobs can be tied to industrial buildings. A survey of the city’s 60 largest employers showed that nearly 70 percent of that group is located in industrial buildings.
DCT will be investing some capital into the city with this project. It paid $8.5 million in a variety of fees including development fees. There also was another $4.5 million invested for the infrastructure for the project, including road, water and sewer.