After a four-year process, national developer Scannell Properties broke ground Wednesday on a new 800,000-square-foot facility across three buildings in southwest Fresno.

The process took three environmental reviews, but Fresno Mayor Jerry Dyer said the $100 million project from a major developer draws other big names for investment.

Scannell builds a variety of commercial buildings across the globe.

“Anytime you get an international company that comes to your city and does business, that opens the door for other companies, whether it’s across the nation or internationally, to want to come as well,” Dyer said. “No question this development will provide upwards of 1,000 jobs — good-paying jobs. It’s going to stimulate our local economy.”

Modern Industrial Users More Densely Employed: Berryhill

Scannell plans to have completed the first of its three buildings at the site on Marks Avenue near Highway 180 by June 2026, said Todd Berryhill, managing director for the Indiana-based company.

They don’t have a tenant yet, but they want to fill the buildings as construction on other portions continues, Berryhill said. He anticipates between 50 and 100 construction jobs for the first building.

Being only yards away from Highway 180 makes it ideal for many industrial uses.

He said modern industrial uses have in recent years increased the employee base, even with automation or artificial intelligence on the rise.

Before, industrial uses only required a few people.

“That’s really changed in the last 20 years, and it’s much more densely employed now, these types of users,” Berryhill said. “They’re either manufacturing or advanced logistics, with a portion of its people assembling or value add.”

Building More Expensive in Major Markets Across US: Oliver

For a national brand like Scannell to undertake an investment this size without a tenant secured shows confidence for future developers, said Will Oliver, president of Fresno County Economic Development Corp.

“People pay attention to where their peers are moving into new markets, and when you look at our region, coming from historic low vacancy rates — 1% and below — to now with this product coming online … it gives us a lot of advantage,” Oliver said.

In industrial-heavy markets such as Phoenix, Arizona, developers are starting to experience “explosive” costs. Without a cap on property tax — such as California’s Prop. 13 — building has become more expensive.

Finding a workforce in Phoenix with its 4% unemployment is also much harder than in Fresno, where unemployment in June was 8.5%, according to the Bureau of Labor Statistics.

“While we do have above-average unemployment — which is why we do what we do, we also have a robust ecosystem of training providers, community colleges, amazing 4-year universities to supply that talent in perpetuity,” Oliver said.

Four-Year Process ‘a Little Bit of a Long Side’: Berryhill

Dyer credited Scannell for paying for a thorough environmental review process.

Approval for the project already zoned for industrial took four years and three rounds of environmental review, Berryhill said.

“Which nowadays is a little bit of a long side, but not abnormally long,” Berryhill said.

Dyer used the groundbreaking to push for opening up industrial space in the part of Fresno called the Southeast Development Area.

“Vacant land serves no purpose in our city. It has very, very little value,” Dyer said. “But when you develop your land, you create jobs, you stimulate your local economy. You generate revenue for the local government.”