By Meghan Hall
The Bay Area’s industrial market remains as active as ever, with large blocks of space going quickly. East Bay Logistics, a firm that specializes in retail distribution for the cocoa and coffee industries, has leased 171,445 square feet of space in San Lorenzo.
Located at 2222 Grant Avenue, the property is accessible via Interstates 880, 580 and 80. The Port of Oakland is about 15.1 miles away, while Oakland International is just a few miles drive. Downtown San Francisco is about 25 miles away, as well.
The square footage is part of a larger industrial and manufacturing building that totals 276,013 square feet. In all, the asset features 40,000 square feet of office, 13 high dock loading positions, heavy power and secure parking. The building sits on about 16.5 acres of space.
Collier International’s Executive Vice Presidents Greig Lagomarsino and Mark Maguire, along with Senior Vice Presidents Nick Ousman and Just Smutko, represented the property owner, a high-net worth family, in the deal. Cushman & Wakefield represented East Bay Logistics.
“It’s becoming increasingly difficult to find well-located, larger blocks of space,” explained Lagomarsino. “This property serves their needs very well.”
According to its website, East Bay Logistics currently operates five warehouse facilities in the West Coast, including two in the Bay Area. The firm’s cocoa offices are located at 25503 Industrial Blvd., and its Northern California coffee offices are located at 1900 West Winton Ave. Both offices are located in Hayward. The firm provides port pick up and handles nearly 400 million pounds of coffee annually through the ports of Los Angeles, Oakland and Seattle. The company works with commodity suppliers, manufacturers and roasters on their flow of inventory.
The Bay Area’s industrial market has continued to fare well, as demand for space continues to outpace supply.
“The industrial market is on fire,” stated Lagomarsino.
A first quarter report recently released by Colliers states that demand for warehouse and distribution product is “thriving,” especially in the Oakland-Hayward-Berkeley submarkets. Vacancy during the first quarter ended at 3.7 percent and gross absorption totaled 1.74 million square feet. Other significant leases to close during the first quarter include RK Logistics Group’s decision to take 269,000 square feet at 6753 Mowry in Newark, as well as Amazon’s 224,000 square foot renewal for space at 6015 Giant Road in Richmond. In another transaction, Omni Logistics inked a lease for 192,000 square feet at 33300 Dowe Avenue in Union City.
Within the submarket itself, demand is driven by proximity to major transportation hubs as well as the Bay Area’s wider consumer base. Overall asking rents also continue to rise, reaching $1.02 square foot triple net by the end of the quarter.
“Momentum from the first quarter is likely to continue if not pick up for the rest of the year as activity in the market is very strong,” Colliers notes in its report. “Varying viewpoints exist, but we may be entering a new normal, and the strength of the e-commerce industry and its demand for warehouse product will continue.”