New Development Activity
Industrial rents have continued increasing in Tracy since 2012 with vacancy decreasing. Industrial space has been in strong position to overcome COVID-related changes in the economy due to the needs of supply chains, proximity to the large Bay Area consumer markets, and reshoring. The following manufacturing building activity is in the pipeline:
- Amazon #3
- Home Depot #2, with Will Call
- Best Buy #2, with Will Call
- 3 Buildings in NEI
Office rents have been on an incline with vacancies fairly low since 2017. Prologis is nearly breaking ground on its first office building in its global portfolio. The 35,000 square foot building is the first new office construction in Tracy since 2004.
COVID-19 has expedited the decline of many retail sectors, particularly in big box categories with multiple closures across the nation. Tracy rents have been decreasing since a high of 2019 with vacancy increasing. Recent closure of JC Penney and Sears at West Valley mall has contributed to the vacancy increase.
New retail was approved at the International Park of Commerce in October. The 10,000 multi-tenant building will be the first retail development in the Business Park. Hella Pie opened a brick and mortar location in downtown in October. Meanwhile, 7-eleven is planning a new convenience store in north Tracy, partially driven by the visitor increase associated with Legacy Fields activity. Across the street from the 7-Eleven site, Dutch Bro’s is planning to develop their first Tracy location. This is an outcome of a several year effort by the Economic Development team to locate a suitable site.