By Nancy Amdur
A newly listed 20,000-square-foot warehouse space for lease at 1480-1492 Rollins Road in Burlingame has generated swift interest from potential tenants partly due to high demand for sparse available inventory in the area, said Joe Cammarata, a senior vice president and partner at commercial real estate firm Kidder Matthews in Redwood City.
Industrial vacancy on the north Peninsula is “very low,” said Cammarata, the listing broker for the property. “Right now anything with flexible zoning and a dock door and yard is highly desirable, just because everything—especially around [the San Francisco International] airport—that comes on the market has a shelf life of a month or two [before] it gets gobbled up.”
Overall vacancy for the Peninsula industrial market is 2.4 percent for the second quarter this year, down from 3.7 percent during the same period in 2014, according to a report by commercial real estate company Cushman & Wakefield. In Burlingame, vacancy for the quarter was even lower, at 1.2 percent.
Inventory in and around Burlingame is shrinking as many industrial spaces are being converted for other uses, such as retail or housing, Cammarata said.
“You’re seeing a lot of industrial uses going away,” he said. Also, in South San Francisco, many industrial buildings are now being used for research and development and life science companies, he added.
Demand for industrial space in the area often comes from the freight industry or food companies, some of which serve nearby hotels or Peninsula-based businesses such as Genentech or Oracle, he added. Significant lease transactions during the second quarter included a 22,059-square-foot warehouse space leased by the San Francisco Opera at 800-840 Burlway Road in Burlingame, according to the Cushman & Wakefield report.
The Rollins Road property sits on about one acre and features a large rear fenced yard, off-street parking and a ceiling height of about 20 feet. The asking rental rate is $1.25 per square foot, which is higher than a more typical $1 per square foot, Cammarata said. The building was vacated by its owner, who public records list as San Francisco-based Sleeprite Industries Inc. The property is easily accessible to Highway 101, Caltrain and BART. Nearby businesses include the Broadway Tennis Center, Peninsula Humane Society and a Tesla Motors showroom.