By Meghan Hall
Two major developers have struck a deal for Fremont acreage that is primed for a new project. According to reporting by The Mercury News, Clarion Partners has bought ten different parcels totaling 27.7 acres for $123.3 million. The sellers of the acreage were entities affiliated with well-known Bay Area developers John Arrillaga and Richard Peery.
Clarion paid all cash in the deal. The properties are located off of Bayside Parkway and Gateway Blvd., near established employers such as Siemens, C&H Enterprises and others.
Fremont has become an increasingly popular market for investors in recent years as San Francisco, Silicon Valley and the Peninsula have developed. In recent months, CenterPoint acquired a large off-market site for about $86 million, while Fortress Investment purchased a Fremont Warehouse for $80 million. In the Ardenwood District, Invesco and Lincoln Property Company purchased two buildings at 6900 Paseo Padre Parkway and 6801 Kaiser Drive for $85 million.
The site is slated for high-tech and industrial uses, and heading into the end of the year, those product types were still performing strongly, according to a recent report by Newmark. Industrial market activity in the East Bay was “extremely” active and net absorption totaled 407,051 square feet. Vacancy fell further to 5.7 percent, while rental rates reached $1.30 per square foot.
“Capital continues to flow into the market, as investors remain eager to acquire buildings in a market with such strong fundamentals,” the report states.
Currently, there is about 189.1 million square feet of total inventory, and an additional 1.5 million square feet currently under construction. However, that space is likely to be snapped up. A number of leases greater than 100,000 square feet were signed during Q3; Amazon took 336,680 square feet at 5800 Coliseum Way, and Shift Auto signed up for 116,370 square feet at 2000 Maritime.
Fremont also had an incredibly active quarter. Sana Bio leased 163,193 square feet and Personalis leased all of 6600 Dumbarton Circle. Novo Norodisk and Ardelyx also recommitted to their leases, making the submarket a hub of activity and further solidifying Fremont’s place as a desirable location for investment.