Tejon Ranch, CA, January 23, 2024 – Tejon Ranch Co. (NYSE: TRC) has announced the commencement of construction for Nestlé USA, Inc.’s new distribution center, marking a significant milestone for the world’s largest food and beverage company with a robust presence in the U.S. Nestlé’s upcoming multi-story facility, spanning over 700,000 square feet, will be situated on an approximate 58-acre parcel of land on the east side of the Tejon Ranch Commerce Center (TRCC).
The fully automated facility by Nestlé USA is designed to cater to its ambient portfolio and will be constructed with flexibility to support future growth and expansion plans. While no official opening date has been disclosed, Nestlé aims for the initial completion of construction by 2025, with operations set to commence in 2026.
Pete Spanos, Chief Supply Chain Officer of Nestlé North America, emphasized the strategic importance of Tejon Ranch as the ideal location for building the next-generation distribution center, providing an efficient route to the West Coast market.
Derek C. Abbott, Executive Vice President of Real Estate at Tejon Ranch Co., highlighted Nestlé’s decision to operate at TRCC, reinforcing its status as a world-class commercial/industrial center. This aligns with other major corporations, including IKEA, Dollar General, Famous Footwear, Caterpillar, Camping World, and L’Oréal.
TRCC has already absorbed more than 8 million square feet of commercial and industrial space, accounting for approximately 40% of the entitled space within the thriving development. In the last 24 months, transactions involving four building sites at TRCC represented over 2.5 million square feet of industrial space, either under construction or completed.
Abbott underscored Nestlé’s contribution to the momentum at TRCC, with nearly a million square feet of additional industrial development recently completed. He attributed this activity to factors such as TRCC’s high-quality workforce, strategic central location in the middle of California just north of the LA basin, a business-friendly local government offering county-wide incentives, a foreign trade zone designation for financial benefits, and significant on-site amenities. Despite the substantial existing space, Abbott emphasized ongoing opportunities to develop new buildings at TRCC to meet the rising demand for warehouse, distribution, and advanced manufacturing facilities.
The Tejon Ranch Commerce Center continues to drive economic growth in Kern County and the surrounding region, having created over five thousand jobs and attracted hundreds of millions of dollars in investments as a gateway between southern and northern California.
Tejon Ranch Co. was represented in the 58-acre land sale transaction by JLL’s Mac Hewett, Mike McCrary, and Brent Weirick.
