-June 5,2021-
LA developer YS Buildings, LLC completed its first”spec” logistics warehouses earlier this year – two 300,000sf behemoths across from Amazon on the south side Riggin in the Visalia Industrial Park.
Now agent for the company – Freddie Molina says the development firm is ready for more despite a one-third cost increase in this year’s construction prices.
Demand is enough that “we’re going for it anyway” he says. Costs for lumber lead the pack but other key components from steel to concrete and all oil products have jumped smartly in price since the pandemic cooled. Lumber prices that were $400 per thousand board feet are now 3X that at over $1300. Home builders say that the lumber shortage had caused the average single-family home price to rise by $35,872.
With the help of Visalia real estate broker Matt Graham, YS Buildings LLC, has leased one of the two 300,000sf warehouses to solar company Sunrun in the past few days and SF-based company is moving in.
Right now, half of the other 300,000sf building is spoken for to be leased by Redwood Logistics to house pet food from Visalia company Perfection Pet Foods, who have been in an expansion mode themselves.
Molina says he is working with several other firms who may want the last 150,000sf.
Meanwhile, Molina says he has acquired another 18 acres just east of his buildings and will ask local builder BJ Perch to construct another 350,000sf “ as soon as possible.” Molina will not only pay more for both land and construction this year but is obligated to build part of Clancy Street to connect to nearby streets.
Molina is not stopping there but looks to acquire more land just to the east and continue the construction spree.
As we have reported, several other developers are doing the same with one 1.2 million square feet project being developed by a Phoenix company, is now approved by the city to move forward at Plaza and Ferguson. The developer says the huge project will employ 400.
This has all been set in motion by UPS and Amazon’s construction of two logistics operations at Plaza and Riggin in the past year. UPS is operational and Amazon is likely to open their doors in a matter of weeks.
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