The first phase of Blue Oaks Commerce Center in Roseville has been completed, with two tenants already signed in the new flex industrial park.

The $80 million project, developed by Schnitzer Properties, includes four buildings totaling more than 305,000 square feet. The first phase includes two buildings and about 190,000 square feet at 2151-2251 Freedom Way, aimed mainly at distributors, warehousing, light manufacturing and recreational users.

Schnitzer broke ground on phase one in August 2024 and finished construction in late December 2025.

For the first phase, the property is drawing interest from small and mid-sized business owners, which Schnitzer Properties specializes in serving. Bays in the first phase range from 5,800 to 110,000 square feet and can support about a dozen tenants. Leasing is handled by CBRE.

“Our competitors like big buildings with one tenant and we like buildings with lots of tenants,” said CEO Jordan Schnitzer.

Schnitzer Properties has owned the site for 16 years. The Portland-based developer has already finished site preparation for the second phase and plans to start construction in May once the weather clears. That phase is expected to take about eight months.

Two companies have taken space in phase one so far. Baseball Addicts, an indoor baseball training facility, and Verio Healthcare Inc., a medical device distributor, each signed for 11,500 square feet, taking multiple bays.

Baseball Addicts opened in early January at 2151 Freedom Way, Suite 100.

John Shorey, senior vice president and regional manager for Schnitzer, said he has seen rising demand from athletic and entertainment users and is in talks with a potential pickleball tenant.

“That segment of the market, which we didn’t know existed... it's definitely been a lot of strong interest there,” Shorey said.

Schnitzer Properties expects more traditional industrial users to follow, including pool supply companies, lighting specialists and small manufacturers.

Shorey said the main advantages of Blue Oaks Commerce Center are its freeway access and Schnitzer’s in-house management approach. He said the project includes features such as extra parking, higher clear heights and loading options sized for smaller tenants.

“They are industrial but we do make sure we put everything we can to make them attractive,” Shorey said.

Across Schnitzer Properties' total industrial portfolio, about 28% is warehousing and distribution. In Sacramento specifically, the state of California is the biggest user of space and the rest is a diverse group of businesses.

Schnitzer Properties now has about 3.2 million square feet in the Sacramento region and aims to grow to 5 million square feet in the next few years.

"We've not grown as much as I'd hoped, but we're getting there," Schnitzer said.

The company is expected to break ground in the spring on a project within Metro Air Park near Sacramento International Airport.