Feb 28, 2022

Building Out Carlsbad’s Industrial Base Ted TchangPresident and CEOTechbilt Companies “There are a few places here and there, but there’s not very much left,” said Ted Tchang, president and CEO of Techbilt. “Like anything, real estate is cyclical. Right now, it’s as strong as I’ve ever seen it in my career,” Tchang said. “As the Carlsbad market has matured, we’ve seen the average business size increase. While the multi-tenant, small tenant space market is still very strong, we see the majority of the companies out there are looking in the larger size range that what we used to see, say 20 years ago.” High-End Campus First up on Techbilt’s construction list is Evolve, a three-building project totaling 67,714 square feet in the Oaks North Industrial Park, with construction expected to be finished in 16 to 18 months. “I guess you could say it’s a high-end flex building,” Tchang said. “We can accommodate everything from a light industrial manufacturing operation to a (company) headquarters.” Evolve is designed for life science, newer technology and research and development companies, according to Tchang. Conor BoyleSenior VPColliers International “It’s going to be a really high-quality, high-end campus with indoor/outdoor space where you can work inside or go outside and sit in the open air and work on your laptop,” said Conor Boyle, a senior vice president of the commercial real estate brokerage Colliers International. That will be followed by construction of a 145,000-square-foot industrial building, with delivery planned in 24 to 30 months, and then a two-building project totaling 140,000 square feet. Plans for that project could change, but construction is slated to finish in 24 to 30 months. Pinnacle Leased The new development comes after Techbilt in January leased a 63,900-square-foot building at 2820 Loker Ave. Absorption Systems, a pharmaceutical company based in Pennsylvania, signed a 10-year lease on the building for $11.5 million. Called Pinnacle, the building leased by Absorption Systems was built by Techbilt in 2018. Part of the delay in leasing the building was caused by the COVID 19 pandemic, but Tchang said Techbilt also was “looking for the right fit.” “Pretty much all the industrial buildings that I build, the plan is I’m going to hang onto them for a long time,” Tchang said. Pinnacle was delivered to Absorption Systems in shell condition. “They were able to get a brand new building that they could build out as they wanted,” Tchang said. In addition to interior tenant improvements, Absorption Systems is adding 16,000 square feet to the second floor of Pinnacle, bringing the final product to 79,900 square feet. Tight Demand