3 Reasons Bay Area Industrial is Hot

1. Relocations

Lee & Associates' Ryan Martens, here looking dapper at a wedding, tells us about Superior Fire Sprinkler relocating from Milpitas and expanding into a larger and more modern facility in Fremont. The 24k industrial space at 4378 Enterprise traded for $3.5M, or $144/SF to Sprinkler (Ryan worked on the deal with colleague Andrew Stoddard). The seller, Nielson Family Trust, was repped by CBRE's Chip Sutherland.

2. High Land Prices

At 29265 Pacific in Hayward, a 1.68-acre patch of land traded for $1.23M, or $16.81/SF. That price is indicative of how hot land is right now. "We are now seeing some new land sales coming in closer to $20-plus/SF on land along the 880. Prices were in the $12 to $15/SF range a few years ago," says Ryan, who repped buyer Chranjit Singh. The seller was Amerigas Propane, repped by Mohr Partners' Valerie Concello. Ryan says the buyer plans on using the site to store trucks.

3. More Owner/User Sales

More trusts and investment groups are trading their properties at the height of the market. Just look at 580 Harlan in San Leandro, a 16k SF industrial building on a half-acre parcel, which traded for $1.1M, or $66.73/SF. The buyer and future occupant is Stronger Building Services, which Ryan repped with Craig Hagglund. The seller is Morjig Trust, repped by Ryan and Jesse Lucas. The price was a little lower than normal because the building needed some improvements (roof, office TIs, etc.). Above, the Lee & Associates team at a recent dinner.

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