Hines, MetLife, Lease 278,500 SQFT Hayward Data Center to Amazon

Amazon, Clawiter Road Industrial Project, Hines, MetLife, Hayward

By Meghan Hall

Amazon’s East Bay leasing frenzy continues. The e-commerce company has leased 278,500 square feet of space in Hayward, snapping up an under-construction facility, according to The Mercury News. The lease comes on the heels of other major leases by Amazon in the East Bay as the company continues to rapidly expand.

Dubbed the Clawiter Road Industrial Project, the building is located at 25800 Clawiter Road and the project site itself encompasses about 26 acres. The building would be used by Amazon as a data center and would provide 49 megawatts of information technology power. Planning documents on file with the City of Hayward show that the project is the brainchild of Hines and MetLife, both major investors and developers in the world of commercial real estate.

Hines and MetLife purchased the property in February of 2019 for $38 million according to public records. Previously, the site was used for agricultural purposes and was later developed in the 1960s by GILLIG for bus manufacturing purposes. GILLIG ended operations at the property in 2017 and vacated the site at the end of 2020. Prior to development, the project site was developed with a 196,000 square foot manufacturing building, a 28,000 square foot warehouse, a 35,000 square foot fabrication and machine building, a 7,000 square foot office building, and another, 3,000 square foot commercial building. 

The project–of which Amazon’s latest data center is apart–will totals 616,000 square feet upon full build-out. The other three industrial buildings part of the project will total 66,444 square feet, 56,720 square feet and 213,931 square feet, respectively. Buildings one and two would also provide 12,000 square feet of employee amenity space, while building three would have an additional 4,000 square feet of amenities. 

Amazon has expanded in numerous capacities across the Bay Area–and the region’s East Bay–in recent months. The firm recently leased 203,500 square feet of space at 6045 Giant Rd. in Richmond, Calif. Currently, Amazon also leases 707,820 square feet at 2995 Atlas Road, which is part of the Pinole Point Commerce Center, and 224,145 square feet at 6015 Giant Highway. 

Amazon’s need for space continues to grow as its subscription base also increases. By the end of 2021, the subscription side of its business grew 20 percent year-over-year, according to data from Seeking Alpha. If the company’s current growth is maintained, subscription business revenues will increase to $100 billion in the next five years.

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