Key insights
- Tejon Ranch Co. and Dedeaux Properties are building a 510,000 sq ft industrial facility in Southern California, expected to complete in early 2027. This expansion occurs amid limited industrial supply and accelerating leasing demand in the region. TRC's stock has gained 26% in six months, though analysis suggests it may be overvalued. This development signals continued growth in the industrial real estate sector, potentially boosting related equities.
TEJON RANCH, Calif. - Tejon Ranch Co. (NYSE:TRC) and Dedeaux Properties announced plans to break ground on a 510,385-square-foot industrial facility at the Tejon Ranch Commerce Center in Lebec, according to a press release statement.
The Class A building will be constructed on a 24.57-acre site and is scheduled for completion in early 2027. The facility will feature 36-foot clear height, 100 dock-high doors, 185-foot cross-dock truck courts, and 4,000 square feet of office space. The building is designed for single or multi-tenant use.
The Tejon Ranch Commerce Center is located approximately 75 miles north of Los Angeles in Kern County, with access to Interstate 5 and connections to I-15 and I-40 via State Highway 58. The 20-million-square-foot master planned development includes a Foreign Trade Zone designation.
The development’s current inventory of seven million square feet of industrial space is fully leased to companies including IKEA, Nestlé USA, L’Oréal, Caterpillar, Dollar General, Camping World, Famous Footwear, and Plant Prefab. The center currently supports 5,000 employees.
"We’re building into a market where industrial supply across Southern California is limited, and leasing demand has been accelerating," said Matt Walker, President and Chief Executive Officer of Tejon Ranch Co.Investors have responded positively to the company’s expansion strategy, with shares trading at $19.79 and posting a 26% gain over the past six months. The stock is currently trading near its 52-week high, though InvestingPro analysis suggests the company may be overvalued at current levels. The company reported revenue of $49.6 million with 18% growth in the last twelve months.
This marks Dedeaux Properties’ second industrial project at the commerce center. In 2024, the company sold a 233,000-square-foot warehouse and distribution facility to a national clothing and textile distributor relocating from the Inland Empire.
JLL’s Mike McCrary and Mac Hewett will serve as exclusive leasing brokers. Fullmer Construction will act as general contractor.
A residential community, Terra Vista at Tejon, opened at the site in spring 2025. For deeper insights into Tejon Ranch’s financial health and growth prospects, InvestingPro offers a comprehensive Pro Research Report covering this and 1,400+ other US equities.
In other recent news, Tejon Ranch Co reported its fourth-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share of $0.06, exceeding the forecast of $0.05. Additionally, Tejon Ranch reported revenues of $23.3 million, significantly above the anticipated $13.94 million. These results highlight a strong performance for the company during this period. Despite these positive earnings and revenue results, the stock remained stable in pre-market trading. No major analyst upgrades or downgrades were reported in conjunction with these earnings. These recent developments provide investors with insights into the company’s financial performance.
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