Commercial Development Guide 2013: Rebounded wine business drives new Napa County construction

The resurgence of the luxury wine business following the economic recession plus capital and marketing investments in downtown Napa to make it more of a tourism destination have supercharged demand for wine-related warehousing, retail space and lodging.

The market for industrial space in Napa Valley is quite limited, according to local experts.

Whether you are looking for small or large spaces, there is very little available, said Michael Moffett of Coldwell Banker Commercial Brokers of the Valley.

Collotype Labels on Dec. 5 said it is expanding ts 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 areas largest wine label printer. Were growing with the market and needed additional equipment and people, and the additional space to accommodate that growth.

Collotype Labels expansion at 21 Executive Way in south Napa is indicative of activity that has rapidly reduced available industrial space in Napa Valley and spurred further construction.

The company had outgrown its existing Napa space and is accommodating the consolidation of a label-printing plant in El Dorado Hills near Sacramento.

This market is extremely active right now, and the vacancy is very tight under 4 percent, said Glen Dowling, leader of the San Rafael-based Cushman & Wakefield team. 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.

Thats 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.

Original post:
Commercial Development Guide 2013: Rebounded wine business drives new Napa County construction