[caption id="attachment_22780" align="alignleft" width="313" caption="Zephyr Express is set to relocate to this recently vacated warehouse in south Napa. (Cushman & Wakefield photo)"][/caption]
About 265,000 square feet in wine warehouse deals were inked recently in the south Napa area, with 164,000 square feet of that being net market absorption.
"Large-warehouse vacancy was over 10 percent, but now it's in the single digits," said Glen Dowling, whose Cushman & Wakefield team was part of the deals. But he said there remains some slack in the market. "The market is not tight," he said.
Wine storage and California delivery service Zephyr Express is set to relocate this month from American Canyon to a 101,200-square-foot temperature-controlled warehouse at 770 Skyway Court in Napa Valley Corporate Park near Napa County Airport.
Napa-based Biagi Bros. Transportation & Storage moved out of the building in April. Zephyr leaves behind about 100,000 square feet at 1166 Commerce Blvd. in American Canyon.
North Hollywood-based Zephyr Express started in 1985 and expanded to American Canyon in 2003.
The second deal brought the two-building, 315,000-square-foot Napa Valley Crossroads warehouse development at the northeast corner of the intersection of Jamieson Canyon Road and Highway 29 to full occupancy. St. Helena-based Trinchero Family Estates, which makes wine brands such as Sutter Home and Folie a Deux, expanded its casegoods storage in Napa Valley with the lease of the 163,700-square-foot newest building at 37 Executive Way.
Mr. Dowling, Matt Bracco and Chris Neeb of Cushman & Wakefield represented 770 Skyway owner-builders JRC Development and Panattoni Development in the three-year lease deal, and Steve Crocker of Colliers International represented Zephyr. The Cushman & Wakefield team also brokered both sides of the 37 Executive deal.
Hundreds of thousands of square feet of big-box retail space has gone dark in the North Bay in the past two years, but a number of the spaces are getting scooped up by retailers looking to reduce the cost of expanding into the market.
For example, Fairfield had 153,000 square feet of vacant space in empty Circuit City, Linens n' Things and Mervyn's stores in its central shopping center hub until recently, according to city economic development specialist Karl Dumas.
Developers Diversified Realty's June 23 sale of its leasehold on the 88,000-square-foot Mervyn's location in Westfield Solano mall to a group led by Westfield paves the way for a deal to move Forever 21 into the Solano market with a lease for the top floor, sans escalator.
Driven Raceway of Rohnert Park recently leased the Circuit City building across the street from the mall, and a few retailers are competing for part or all of the 32,000-square-foot Linens building. The city also is selling land to Lowe's Home Improvement to build a warehouse store starting in spring 2011.
"Having these types of spaces filled would make a huge difference for us to make the case for new development that would attract other retailers to come into the market," Mr. Dumas said.
Earlier this year, Inland Western leased the 78,000-square-foot Mervyn's building in Vacaville Commons to Burlington Coat Factory.