Seattle-based Amazon has made the Bay Area a key strategic location for its enterprise. The company has expanded massively across the region recently and invested heavily into an entity responsible for the development its devices. Another, relatively small lease exemplifies the diversity of its activity throughout Northern California.
In a report by the San Jose Mercury News, the company is expanding its footprint in San Jose’s Berryessa neighborhood by taking nearly 65,000 square feet of flex/manufacturing space. The property, which sits on approximately 3.6 acres is owned by D.R. Stephens & Co., a family-owned and run San Francisco-based real estate investment firm, which acquires and manages industrial and R&D properties across the Bay Area. The company has been active in this business since 1973 and owns properties mainly in the East Bay and Silicon Valley.
The property leased to Amazon is located at 2302 Trade Zone Boulevard in San Jose, and according to an un-dated marketing document by CBRE it had been offered for sale or lease. Stephens had acquired the asset in 2008 for roughly $7 million, according to public documents, and the offering price on the asset was $13,250,000. The advertised lease rate was $1.10 per square foot NNN. There is no indication at what rate Amazon signed the deal, and an e-mail to CBRE was not answered. The property was marketed by Brian Matteoni and Chip Sutherland, both are senior vice presidents who work out of the company’s San Jose office.
The building offers high visibility and a suitable location between US Highways 680 and 880. It is located in an area that has a mix of industrial and office uses, although there is considerable housing adjacent to the neighborhood to the east, as well.
The property lists around one quarter of the space as office, and the other 75 percent is listed as production warehouse improvements. The building has 19-foot ceilings, a double dock platform with three grade doors and a 2000 Amp, 277/480 volt panel.
While no information on the lease terms has been provided, the offering document states that that tenant improvements were available, and according to a photo taken by the Mercury News, DPR Construction is performing work in the building presently.
Amazon would have a need for a property of this type, based on its operations in Silicon Valley. The company’s Lab126 is based in the Bay Area, and it is credited with developing all of the devices for the global retailer. The Amazon Kindle, Fire, Dash, Echo and FireTV products are all created by Lab126, and the company currently lists 279 openings across its locations in San Jose, Sunnyvale, Cupertino and San Francisco. Lab126 is headquartered at 1100 Enterprise Way in Sunnyvale, which is around 10 miles away to the west and easily accessible via State Route 237.