INDUSTRIAL REAL ESTATE GUIDE
Sacramento County Economic Development
THE ULTIMATE BUSINESS PARK
Metro Air Park is unique and significant in many ways . It stands alone as a masterplanned , fully entitled business park of not only vast size at nearly 1,900 acres , but of vast potential and unparalleled advantages . “ The scope and geographic positioning of this park and the incredible large-scale development opportunities it offers stand out in the entire Western U . S .,” says Troy Givans , economic development director for Sacramento County .
Metro Air Park is already making a substantial economic impact with its first tenant , and at buildout , that impact will be enormous with 22 million square feet of development , assessed value of $ 5 billion , 32,000 direct jobs , 20,000 indirect jobs and $ 3.3 billion in annual wages .
Land use will be a mix of manufacturing , high-tech research , office and retail , and lots range from 3 acres to 166 acres . The park ’ s location , adjacent to Sacramento International Airport with direct access to Interstate 5 and only a mile from Highway 99 and 4 miles from Interstate 80 , is an enormous advantage to manufacturing and distribution tenants needing buildings as large as 1 million or more square feet and immediate north-south and east-west freeway access .
“ The County has made a concerted effort along with Metro Air Park property owners to make the park competitive across the Western U . S .,” Givans says . “ This is now the ultimate business-park destination .”
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A hot segment of the Capital Region ’ s industrial real estate market operates at below freezing temperatures .
Pandemic-induced demand for instant delivery of an ever-widening range of products , from pizza to pharmaceuticals , plus newly developing segments of the area ’ s economy such as plant-based food and dairy products , are fueling the demand for cold storage warehousing as a hedge against broken supply chains .
A recent CBRE survey projects a 4 percent annual growth rate for cold storage warehousing nationwide . That ’ s partly due to huge increases in online grocery buying , which have grown from 3 percent of sales in 2018 to a projected 13 percent in 2022 according to the Food Marketing Institute as consumers demand more fresh and frozen food and less canned and packaged food . The Institute estimates that 70 percent of households “ will regularly do some grocery shopping online ” in the next decade .
To accommodate this unprecedented growth , new and larger cold storage warehouses are replacing older and smaller facilities that are decades old . U . S . Cold Storage , for example , built a new facility in McClellan Park five years ago that is almost seven times larger than the 40-year-old warehouse it replaced . “ We had always talked about expanding in Sacramento ,” says Steve Palefsky , who manages the McClellan facility , “ and we made the tough decision to shut down the old facility because it was outdated .”
With the opening of a second phase last year , Palefsky doubled his capacity at McClellan . With a capacity of 14.4 million cubic feet ( the equivalent of 3,600 railroad cars ), the facility is a critical link in a strategic supply chain that stretches across the west . “ Everybody wants to hold bigger inventories , given the shortages ,” Palefsky says . “ Grocery stores have more refrigeration cases than ever , but they still have limited space ,” which makes cold storage warehouses an important part of their distribution systems .
With 52 truck loading docks , four railway doors and 60,000 pallets of goods , the Sacramento facility is a strategic hub in U . S Cold Storage ’ s national system . Palefsky says they can reach Southern California , the Bay Area and essentially all of the West and
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