Just about a year into its ownership in Hayward, CenterPoint Properties leased up sixty percent of an industrial asset located at 2376 Davis Avenue in Hayward, California. The Lease of 80,782 square feet was taken by electronic bicycle manufacturer and distributor E-Go Bike, according to a flyer by CBRE. The remaining 51,977 square feet are still available in the property.
CenterPoint acquired the asset in a deal worth $25,250,500, or $190 per square foot, in January of 2020, according to public documents. The off-market transaction delivered a property to CenterPoint that was rehabilitated during the first half of 2020. Some of the upgrades included ESFR sprinklers, new LED lights and various cosmetic upgrades.
The facility attributes are unique for the East Bay marketplace with 28’ clear heights – well above industry standard for the area, 22 dock door positions, active Union Pacific rail spur and an attractive eastern loading yard for increased trailer/auto storage flexibility, according to a statement by the company.
“This is a strategic vacancy on the heels of a robust fourth quarter of net absorption,” said Greg Pearson, CenterPoint Vice President of Investments at the time of the acquisition.
Chris van Keulen, Bob Ferraro and Michael Barry of CBREs Oakland office represented the owner, CenterPoint Properties, and Chris Schofield of Lee & Associates represented E-Go Bike in the lease negotiations.
Alternative and innovative tenants are part of the success story of the industrial commercial real estate market over the last few years. E-commerce has played an especially important role in the industry’s growth, overall.
“E-commerce has grown steadily over the years, and it will continue at a strong pace for the foreseeable future,” said John Morris, Executive Managing Director and Leader of CBRE’s Americas Industrial & Logistics and Retail businesses. This will continue to create demand for industrial assets, according to CBRE’s research, which is predicting as much as 330 million square feet of e-commerce-related logistics space over the next few years. “As a result, distribution and supply chain networks will continue to be under pressure to meet demand at a time when industrial vacancy is at record low levels. A significant amount of new construction will be needed in the next few years just to keep pace with robust demand,” Morris added.