The high ceilings and architectural details of previous industrial buildings have become an interesting framework for architects and investors when creating new retail or housing complexes. 

With larger buildings, selling a 10-thousand square-foot space to one tenant is harder. So something developers behind Sun Stereo Warehouse and The Garage, Jamin Brazil and Reza Assemi, are doing. 

Subdividing larger spaces helps fill in the many square feet each of these old industrial buildings has. Veronica Stumpf, broker for Stumpf and Company, said it creates a mini ecosystem within one building. 

Stumpf’s specialty is the downtown Fresno commercial real estate market. She is a well-connected and knowledgeable broker about the market and revitalization efforts in downtown Fresno. 

Leasing the space to several small businesses or organizations allows for many amenities, and it’s still affordable for small businesses. 

“For example, Aerial Arts Yoga, I had conversations with them on and off, and they were trying to move out of Cal Arts Academy and find their own space where they now have full autonomy of that space and exclusive use of that space,” said Stumpf.  “They were constantly running into roadblocks – it’s either too big or the ceiling height was too small. But now they’re currently in Sun Stereo Warehouse.”

The building also rethinks how owners can repurpose industrial buildings. Around 10 years ago, the City of Fresno was looking to rezone many areas, meaning they wanted to slowly phase out industrial use in the downtown area and push it closer to Freeway 41. 

Stumpf said these industrial buildings, such as the warehouse, have been used for auto repairs. Rethinking what can be done with them is a good idea. 

 

“So it’s really good that you’re seeing more investors repurpose these industrial buildings for more retail use that will increase the economic activity and foot traffic and general liveliness on the weekends and evening for downtown,” Stumpf said. 

A common conception of vacant older industrial buildings is that investors live out of the area. Stumpf said it’s 50/50, and many properties in their third generation currently own the buildings. 

They may be in Fresno, or they might be in the Bay Area or Los Angeles. 

She shared that several years ago, she sold a building and then the brewery district, which had been owned by a single family for 100 years. She was working with 12 different part owners and local investors who were looking to bring downtown ownership back to Fresno. 

A new development in Visalia has just been completed, serving five local restaurants. The Mix is a two-story building that will feature fine dining at Fugazzis upstairs and popular eateries like Quesadilla Gorilla, Scoops Ice Cream, and Bombshell Beans downstairs. 

The building was formerly occupied by Quality Jewelers, which closed after 39 years in business, and Ziayas, a family-owned studio & gift shop that provides wellness tools, accessories, and home essentials focusing on community, healing, and sustainability.

The building was originally built in 1912 for the corporate offices of Kaweah Electric. After a devastating fire in late 2018, it was in the process of being fully remodeled. 

When it comes to repurposing old industrial buildings in places like downtown Fresno, investors face roadblocks like outdated infrastructure.

Stumpf shared that if the goal is to move more people downtown—10,000 units in about 10 years—the city needs to update old infrastructure to accommodate the large increase in residents. 

As a broker specializing in the downtown commercial real estate market, Stumf shared that she’s curious to see what happens with the historic JC Penney building. Purchased by Will Dyck, his plan is to convert the upstairs office space into market-rate housing.

She shared that converting office spaces into residential housing is interesting because contractors must ensure that each unit has natural light coming in, which is rare for offices.