Manufacturers Are Back In OC

Tenants looking for high-quality manufacturing space are sometimes hitting a brick wall. (Which is only good if they manufacture bricks.) Saywitz Co SVP Robert Ritschel tells us why.

1) Manufacturing’s demise is greatly exaggerated.

Demand from the manufacturing sector in Orange County and Southern California has increased over the past 12 months, Robert says. The exodus of manufacturing companies during the downturn is clearly finished. The companies that felt it was better to do business elsewhere have left. Others that were not financially viable were either acquired, merged, or no longer exist.

2) Companies want to be here.

The remaining manufacturing companies choose to be in SoCal and OC for a variety of reasons, though inexpensive real estate isn’t one of them, Robert says. Perhaps they want a location near one of the prime distribution hubs on the Pacific Rim, or they're run by execs who choose to live in Orange County. Pictured: the 54k SF 640 N Puente St in Brea, which HVAC systems maker Air Treatment Corp recently bought. Saywitz’s Andrew Herron repped the buyer, while Voit Commercial’s Seth Davenport repped the seller.

3) Manufacturing space is tighter now.

Aerospace, plastics, and food-related industries, among others, are all in expansion mode. (As a result, so are our waistlines.) Finding the right space in OC can be tough, Robert notes. Beyond size, one must consider appropriate power and other manufacturing-specific needs. “Our advice to our manufacturing clients is to begin the exploration of their real estate requirements early.”

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