2 Big Deals Show East Bay Industrial Demand Isn’t Waning
The booming industrial market continues in the Oakland East Bay market showing signs of growth in Q1 2021, according to a CBRE report.
Two San Leandro deals in May are indicative of continued high demand for industrial space along the Interstate 880 corridor connecting Oakland and San Jose.
A 44K SF San Leandro property on a 2.72-acre site at 14664-14680 Washington Ave. was sold by the Lighthouse for the Blind and Visually Impaired for $9M to a Delaware-based company, 14680 Washington (EAT), which plans to occupy part of the property, according to a press release.
The sale was completed by Colliers International Executive Vice President Mark Maguire, Senior Vice President Justin Smutko and Vice President Nick Mascheroni.
The property supports both industrial and retail uses with a multi-tenant configuration. At the time of the sale about 10K SF of the industrial portion and approximately 6K SF of the retail area were leased, with the remainder to be occupied by the new owner.
As part of a broader plan to expand its Northern California footprint, First Industrial Realty Trust acquired a 62K SF warehouse/distribution building at 2085 Burroughs Ave. for $12.3M. The company has plans for making capital improvements to the property including lighting upgrades, replacing the roof and a seismic retrofit, all expected to be complete by Q3 2021.
“Northern California’s industrial market continues to see strong demand given its dynamic consumer base and significant supply constraints,” First Industrial Regional Director John Quinn said.
Bisnow reached out to Envirocom Communications Strategies principal Surlene Grant, who is also a former city council member, for community input on the growth of industrial in San Leandro in general.
"You don't want these properties to sit vacant, because, No. 1, they generate revenue and tax base for the city," Grant said. "They also create jobs for the city. But you also want [the uses] to be compatible with community values, and something that benefits the community. You don't want it to be something that creates an environmental justice problem."
The CBRE report shows that two of the four biggest industrial sales in the Oakland East Bay market in Q1 2021 were in San Leandro including First Industrial’s Burrough’s Avenue acquisition. Westcore Properties also bought 75K SF in the city.
Of the 11 submarkets tracked by the report, San Leandro has the fourth-largest share of rentable industrial space at 21M SF. Industrial vacancy in the city is at 1.7% compared to the Oakland East Bay market as a whole, which was 2.8%.