Manufacturers are heading to markets north of Los Angeles for industrial space. Tejon Ranch has become a landing pad for these industrial users, who are finding new development, build-to-suit opportunities and good company, with companies like IKEA, Caterpillar, Famous Footwear, L'Oreal and Dollar General as neighboring tenants.

"At Tejon Ranch we're seeing an increase of inquiries about available space from manufacturers and large corporations seeking solutions to their western U.S. supply chain distribution, as well as third-party logistics," Joseph N. Rentfro, EVP of real estate for Tejon Ranch Co.," tells GlobeSt.com. "Moreover, we're speaking with a variety of Los Angeles-based businesses seeking higher-quality buildings at lower rents who want to stay local, but who find current rents in LA unpalatable. In addition, due to the increased demand in this sector and extraordinarily low vacancy rates, we're also seeing more inquiries regarding build-to-suit opportunities."

The neighboring large corporations is an important element to attracting manufacturers. "Being near manufacturing hubs allows for quick shipping times as well as supply chain risk mitigation," says Rentfro. "As an example, the Tejon Ranch Commerce Center can provide regional supply chain distribution to just-in-time local delivery that allow companies to bring their distribution hubs closer to their customers. That's a huge advantage for manufacturers."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.