Terreno Realty picked up an industrial space in California’s competitive East Bay for $34.6M, adding 106K SF to the company's portfolio at a time when warehouse space is increasingly rare.

Terreno purchased the property from Reynolds & Brown. Composed of five buildings located across multiple addresses on San Leandro's Teagarden Street, the property has only had one owner since 1971.

CBRE’s Michael Barry, Bob Ferraro and Chris van Keulen represented both parties in the transaction.

“We’re very pleased with the arrangement and the ability to secure competitive offers for a property that rarely sees any vacancies. The property has been professionally and meticulously maintained over the years, as evidenced by the sellers’ longstanding ownership,” van Keulen, a CBRE senior vice president, said in a press release.

Terreno paid $326 per SF for the property, which is one of the largest industrial sales in the East Bay so far this year by square footage, according to a CBRE market report that lists a 257K SF purchase by Fortinet as the largest in the first quarter.

Available industrial space in the East Bay is rare, with San Leandro carrying a 3.1% vacancy rate in the industrial market at the end of Q1, according to CBRE. Rental rates have subsequently increased, with Oakland’s industrial market seeing a 19% increase year-over-year.

Duke Realty, soon to be acquired by Prologis, recently picked up a former scrap metal foundry in Oakland, with the intention of redeveloping the property into an industrial building.

CORRECTION, JUNE 15, 9:30 A.M. PT: A previous version of this story misstated the buyer of the property. The story has been updated.