Trammell Crow JV Kicks Off $100M Home Depot Facility
A joint venture between Trammell Crow Co. and Realty Income Corp. has broken ground on a 655,200-square-foot, build-to-suit industrial facility for The Home Depot in Stockton, Calif. The $100 million project is slated for completion in 2026.
The development has been in the works for several years, according to prepared remarks by Trammell Crow Principal Will Parker. As of 2023, plans called for five bulk docks and 22 flatbed docks, as well as parking spaces for 180 trailers, 235 vehicles and 70 trucks.
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Located at 320 McCloy Ave., the site is less than 3 miles the Port of Stockton, which moved some 4.3 million metric tons of cargo in 2023. Interstate 5 and the Stockton Metropolitan Airport are roughly 3 and 9 miles away, respectively.
The project is slated to add four rail tracks to the Port’s existing infrastructure and feature a solar renewable energy component. The property will also include 350,000 square feet of outside storage space.
The Port of Stockton issued a 50-year ground lease to Trammell Crow for the 58.7-acre site. Construction also includes remediation of the contaminated land previously utilized by the U.S. Navy.
Cushman & Wakefield Executive Managing Director Tyson Vallenari represented the Port of Stockton in the ground lease negotiations, while CBRE Vice Chairman Tom Davis worked on behalf of Trammell Crow Co.
Home Depot warehouses’ state of play
This isn’t the first time Trammell Crow and The Home Depot collaborated on a build-to-suit facility. In 2021, Trammell delivered a 614,676-square-foot building in Lithonia, Ga., roughly 22 miles east of downtown Atlanta.
Home Depot’s warehouse and distribution center assets nearly doubled between 2018 and 2023, growing from 56 to 111 million square feet. But the retailer started downsizing this footprint this year, vacating 879,000 square feet near Chicago and another 480,000 square feet in the Inland Empire. Furthermore, the company began looking to sublease a 1.3 million-square-foot facility in Goodyear, Ariz., and a 1.1 million-square-foot warehouse near Columbus, Ohio.
Central Valley’s industrial pipeline loses steam
The industrial supply pipeline of California’s Central Valley thinned out throughout the year, reaching 900,000 square feet underway in September, down from 4.1 million square feet in March, according to a report by Colliers.
Meanwhile, the market’s industrial vacancy rate reached 7.8 percent, marking a 40-basis-point increase over the quarter. The hike resulted from the speculative industrial deliveries throughout the third quarter, which added 1.1 million square feet of vacant space to inventory.
One of the industrial projects currently underway in the Central Valley is Walmart’s 900,000-square-foot warehouse, also in Stockton. That fulfillment center is slated for delivery in 2026 as well.
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