President & CEO of SCVEDC
While the COVID-19 crisis initially gave many companies pause for good reason, 2020 was an exceptionally good year for industrial real estate across the board, the Santa Clarita Valley included.
In 2020, the SCVEDC was pleased to announce that several new companies chose to locate in the SCV, including two Amazon fulfillment centers, DrinkPAK, a beverage manufacturer, and a state-of-the-art medical testing lab. Several SCV companies expanded, as well, including P3 Inc., LA North Studios, Lief Labs, 24/7 Events and Mellady Direct Marketing.
Commercial real estate researchers predict that this growth trend in the industrial sector will continue, especially in communities with a fast-growing population like the SCV.
COVID-19 has altered the way we live and the way we shop, and while that has been problematic for the retail sector, it has meant big gains in e-commerce. As consumers have come to expect faster and faster deliveries, big players in the fulfillment world have been taking on vast amounts of square feet to meet that demand. Smaller logistics companies like AMS Fulfillment in the Commerce Center, which typically focuses on business-to-business fulfillment, quickly changed channels to meet existing demand and consequently have also seen sales increase this year.
Beyond e-commerce, the SCV has seen expansion in the film industry. After an industrywide shutdown affecting film and television productions and thousands of workers due to the COVID-19 pandemic, filming is finally back and SCV sound stages are filling up quickly. LA North Studios, one of Santa Clarita’s newest and largest soundstage facility and studio operators, signed a five-year lease in November at The Center at Needham Ranch to expand their soundstage capacity.
Another big growth area nationwide and in the SCV is in the food and beverage industry. We announced late last year that DrinkPAK, an alcoholic and non-alcoholic beverage manufacturer signed a lease at Needham Ranch. The location will house the company’s procurement support, complex batching and processing, filling, packaging, on-site storage and distribution. Earlier in the year, another large-scale food manufacturer signed a lease at IAC Commerce Center and another foods business closed escrow on a site in the Valencia Industrial Park. Is the SCV on the verge of a new cluster?
Holly Schroeder is president and CEO of the SCV Economic Development Corp., a unique private / public partnership representing the united effort of regional industry and government leaders. For more information about the SCVEDC, visit SCVEDC.org, or call (661) 288-4400.