What’s hot in commercial real estate? Cold storage and Opportunity Zones – Daily News

on Feb2
by | Comments Off on What’s hot in commercial real estate? Cold storage and Opportunity Zones – Daily News |

With a fresh year ahead, many organizations host events in January and February to educate their members and the public on the year behind and trends in front. I was privileged to attend three such gatherings recently — the Council of Supply Chain Management Professionals, the city of Corona Economic Development, and a “lunch and learn” hosted by Clarion Construction.

All three — although widely different — were exceptional! What follows is a brief takeaway from each.


Who are they: The Council of Supply Chain Management Professionals is the leading global association for supply chain management professionals. They have been helping their 9,000 members and their companies since 1963. Resources include networking opportunities, research, and online and on-site professional educational opportunities.

The event: This year it focused on career opportunities, culture, scholarship and networking among the attendees. We were treated to comments by a representative from FedEx, Living Spaces Furniture and AWESOME.

Supply chain management, which was virtually non-existent 20 years ago as a career, a collegiate major, and largely dominated by men, now boasts a wide range of jobs, multiple advanced degrees and a diverse base of players.

City of Corona Economic Development

The event: Opportunity Zones dominated at this session. Larry Kosmont of Kosmont Cos. and Blake Christian from HCVT schooled us on the ups, downs, ins and outs of the tax-benefit zones.

While I had hoped we’d get a bullet-point rundown, the reality was more confusion than before! OZs — as they are called — contain more mystery than the Wizard of Oz. Follow the yellow brick road indeed!

Simply, Opportunity Zones are an effort to spur investment in economically challenged areas by providing capital gain tax deferral. Great in concept but much more difficult in practice. California claims 879 Opportunity Zones throughout the state with 27 in Orange County and 108 in the IE. Viewed by municipalities as a means to stir business growth, some cities are overlaying OZs with Enhanced Infrastructure Finance Districts. Together, investment is encouraged and cities benefit from the incremental property values.

Clarion Construction

Who they are: “For over a quarter of a century, Clarion Construction has provided comprehensive construction services to only one market segment, the cold storage, food manufacturing and food distribution industry.”

The event: Cold storage is an area of the commercial real estate trade that few professionals understand. So, this session was devoted to education. In attendance were a wide range of industry representatives: property owners, developers and brokers.

Freezer cooler space was once housed in centralized warehouses adjacent to grocery story corporate headquarters. Nowadays, cold storage has expanded regionally and locally as “same-day” demand has flourished. “Cold” is defined as any temperature-controlled warehousing from ambient to 40 degrees below zero. Clearly, with each comes nuance.

Probably most interesting were the steps needed to ensure the ground underneath a building doesn’t freeze. The slab is removed, soil excavated, subterranean piping installed, thermal barriers assembled and rebar and concrete replaced. Boom! A chamber suitable for Ben and Jerry’s is the result.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.

Previous postDay After Emotional Kobe Bryant Tribute, Lakers Score 81 in 1st Half, Crush Kings – NBC Los Angeles Next postStarbucks Manager Inspires Kindness After Tragedy Strikes Her Community – NBC Los Angeles

Los Angeles Financial times

Copyright © 2022 Los Angeles Financial times

Updates via RSS
or Email