Amazon Changes Course, Sublets 300,000 SQFT San Leandro Industrial Facility to DHE

Amazon, Trammell Crow, San Leandro Business Center, San Leandro, DHE, PREI,

By Meghan Hall

E-commerce giant Amazon has secured a new tenant for its space in San Leandro after failing to procure the necessary permits to operate. According to the San Francisco Business Times, Dependable Highway Express (DHE) will take over 294,146 square feet at 200 Halcyon Drive. 

The updated lease was signed in March and will last for five years. The building sits on about 14 acres, and is part of the San Leandro Business Center. The property was master developed by TCC on behalf of Principal Real Estate Investors (PREI). In addition to 200 Halcyon, two other buildings, and more than 16 acres, are part of the campus. Building shells were completed in 2019.

“The three buildings feature four murals totaling 15,652 square feet, approximately 3,400-to-4,500 square feet per mural, titled ‘Hands of Change,’” Trammell Crow states on its website. “The theme of the murals center around the concept of: hands, as a metaphor for people and the community; as well as the four seasons, starting with Fall and ending with Summer, as a metaphor for the local region’s history and natural cycles of change and rebirth.”

The property is about 30 minutes from San Francisco International and Oakland International airports. The Port of Oakland, as well as hubs like San Jose and downtown Oakland, are also nearby.

Amazon had originally intended to use the building–the largest of the three at the site–as an indoor delivery station. An application to use the space as such was filed in 2020; however, it was never approved. Over the past few months, Amazon has put one million total square feet back on the market as it faces hurdles with entitlements. 100 Halcyon Drive, which Amazon has also leased, is available, as well as a 506,925 square foot building at 2701 West Winton Ave. in Hayward.

West Coast Commercial Real Estate News