North Bay Business Journal

Thursday, December 5, 2013, 6:04 pm

Collotype Labels expands Napa plant

Part of surge in Napa industrial real estate leasing and construction, broker says


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    21 Executive Way, Napa

    Collotype Labels expanded to occupy almost half this south Napa warehouse. (image credit: Cushman & Wakefield)

    NAPA — Collotype Labels on Thursday said it is expanding its Napa wine label printing plant by 20,000 square feet to accommodate growth and consolidation of another California plant.

    The company signed a 10-year renewal of its lease of 51,000 square feet of industrial space at 21 Executive Way in south Napa, ending up with 71,237 square feet after an expansion.

    “The wine market industry is growing, and all signs are that it will continue to grow,” said David Buse, president of Collotype Labels, the largest wine label printer in the market. “We’re growing with the market and needed additional equipment and people, and the additional space to accommodate that growth.”

    The company had outgrown its existing Napa space and is accommodating the consolidation of a label-printing plant in El Dorado Hills near Sacramento, according to General Manager David Buse, who oversees the Napa, Sonoma and Montreal plants. He declined to go into many specifics about the number of employees and pieces of equipment coming to Napa from that plant, except to note that the presses are smaller versions of what’s currently in use in Napa.

    The San Rafael-based Cushman & Wakefield commercial real estate team brokered the lease deal between Collotype Labels and Whal Properties, owner of the 7-year-old, 150,000-square-foot warehouse.

    “This market is extremely active right now, and the vacancy is very tight — under 4 percent,” Mr. Dowling said. “I have been working in this market for 29 years and have never seen it so tight. The largest availability right now is approximately 25,000 square feet.”

    That’s generating tenant demand and prompting construction at several new industrial projects, according to Mr. Dowling. For example, E&P Properties’ 103,000-square-foot second south Napa warehouse is set for completion in April.

    “There are at least five projects teed up behind it, and several of them should be under construction next year,” Mr. Dowling said.

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