Redwood City, California, September 23, 2015 – Colliers International recently brokered a long-term lease at 1089 Mills Way in Redwood City, CA. At ±87,000 square feet, the transaction represents the city’s largest new industrial lease in recent history.
Mike Davis and Michael Draeger of Colliers International’s Redwood City office represented the Landlord, 1089 Mills Way, LLC, in the transaction. The property was leased to Carbon3D Inc., a Silicon Valley-based company that has developed breakthrough technology for layerless 3D printing. The company will be expanding and relocating to 1089 Mills Way from another location in Redwood City.
The ±87,000 square foot office/warehouse facility features ±34,000 square feet of office space, ±53,000 square feet of warehouse/manufacturing space, 24 foot clear height and is located minutes from Redwood City’s burgeoning downtown core.
“This is the largest office/warehouse lease in Redwood City in recent history and brings the effective vacancy rate for this product type to zero percent. The tenant plans to invest significant capital into the property to create a first-class headquarters, manufacturing and R&D facility,” said Mike Davis of Colliers International.
“Large blocks of functional industrial space have become increasingly rare on the San Francisco Peninsula, especially south of Highway 92. Conversion of industrial product for office and residential uses has continued to reduce the industrial building base, but demand for the space has not waned. Scarcity will continue to put upward pressure on rents as tenants compete for space,” said Michael Draeger of Colliers International.
Colliers International’s market research indicates that market vacancy for industrial product in San Mateo County is down 33%, year over year, at 2.65% currently. Average asking rent has increased 18%, year over year.
About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is a global leader in commercial real estate services with more than 16,300 professionals operating from 502 offices in 67 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 10 consecutive years, more than any other real estate services firm.