Navigating turbulent economic conditions is no easy feat, but Wonderful Real Estate has managed to do so with their in-house discretionary capital and conservative growth strategy of 1–1.5MSF annually on a speculative basis. Their Southern Central Valley location has also been a strong advantage to the success of the Wonderful Industrial Park (WIP). Located in Shafter, California, WIP is the geographical nexus for distribution to 11 Western states and thoughtfully designed with an extensive buffer between industrial and residential areas as well as amenities that benefit local communities like their newly opened 40,000 square-foot Wonderful Career Center.
The industrial sector has had a remarkable run during the pandemic; however Jason Gremillion anticipates there will be a lull for remainder of 2023 possibly into Q2 2024 due to tenants pausing investments/acquisitions based on increasing cap rates & projects with high land bases. Unresolved labor negotiations at U.S West Coast Ports may further negatively affect CA’s industrial sector; though if successful this summer it could lead full recovery by Q3 2024 according industry expert Gremillion.
