Kansas City-based NorthPoint Development recently broke ground on  Fox Field Commerce Center, a logistics hub in Lancaster. The center will span as many as 110 acres.

Construction began with the center’s building two, a 650,000-square-foot warehouse facility. It will later follow with building one, which has already received entitlements.

“It’s some of the last land in really the Southern California region that is zoned industrial that hasn’t been developed,” says Joel Schrenk, western regional vice president at NorthPoint Development.

“We say the next frontier for industrial development, but in some ways, you might consider it the last frontier because all the industrial land that was allocated by cities to be developed industrial has been developed over the last couple decades. It’s really some of the last land of its kind available,” he adds.

According to Schrenk, building two’s construction also signifies the largest speculative building to ever be developed in the city of Lancaster.

He says the building is designed for flexibility and has a relatively modern build compared to the other industrial developments nearby, which will include the installation of solar rooftops, 40-foot clear heights, 76 fully equipped dock doors and the option to build up to 40,000 square feet of additional office space.

“We really see a need for this type of bulk product in this area,” Schrenk says, referring to Lancaster. “Which, if you look at the market holistically, it’s still the most supply-constrained segment of the market.”

Schrenk says one of the biggest upsides of Fox Field Commerce Center is the number of jobs it will provide and other economic benefits it will bring to Lancaster as a whole.

And from the tenant perspective, he believes Lancaster to be more compelling than the Inland Empire due to cheaper rents and similar drayage rates, as well as its strong labor pool and supporting infrastructure.

The first of many

Construction commenced on building two in July and is expected to be completed in July of next year. KBC Advisors has been assigned to market and rent out the space.

While leasing efforts are still under way, Schrenk anticipates one tenant to lease the building’s entirety and said interest thus far has been widespread, with distribution companies, warehouse users and light manufacturing users all taking interest in the space.

While NorthPoint is taking it one building at a time, the total future development will be far greater than that – poised for around four – according to Schrenk, who said NorthPoint is working on obtaining permits for at least two others.

The Kansas City-based developer first acquired the land for the logistics hub in 2023. Fox Field Commerce Center will be its first vertical development in Southern California and, depending on leasing activity, will serve as a catalyst for future investment in the region.

“We’re excited about getting started with our first building in all of Southern California,” Schrenk says. “We’re really appreciative to the city of Lancaster for being so supportive of us and helping us work through the process. Even with a supportive city, as everybody knows, it’s a pretty arduous process, but they’ve been great. We’re hoping to bring in great tenants in the market and continue on with the next one.”