Demand for new, high-quality industrial space has increased amid land and power constraints
San Jose – August 8, 2023 – HYC, a global leader in industrial automatic test equipment and system solutions, leased the last 35,000 sq. ft. flex-tech building at Pacific Commons South (PCS). The 1.7 million sq. ft. industrial business park in Fremont, Calif. is now fully occupied. PCS is one of the largest industrial speculative projects developed in Silicon Valley.
CBRE’s Rob Shannon, Chip Sutherland and Bob Ferraro represented the landlord, a joint venture between Overton Moore Properties (OMP) and Invesco Real Estate, from land sale through the leasing of all 10 buildings and permanent debt financing.
“Pacific Commons South has been a unique project since its conception that offers the amenities of a suburban office campus with top-of-the-line features expected of a Class A industrial center. The project’s building attributes, access to pedestrian and bike trails, proximity to retail and restaurants and major interstates provide the amenities that tenants and their employees covet, making it a game changer in the industrial sector,” said Rob Shannon, Executive Vice President at CBRE.
Located at 5210 Bunche Drive in Fremont, Building 5 at Pacific Commons South is a two-story flex-tech industrial building with dock-high loading doors, high clear heights and 11 electric-vehicle charging stations. Building 5 is one of 10 buildings at Pacific Commons South.
“We’re delighted to have the project 100% occupied with a diverse and terrific tenant base. I can’t say enough about the marketing and leasing efforts from Team CBRE. Their dedication to seeing the project through to the last lease, has made PCS a tremendous success,” said Timur Tecimer, Managing Partner and CEO of OMP.
OMP and Invesco purchased Pacific Commons South in 2017 and developed the project in three phases, breaking ground on the first phase in May 2018. As the first two phases were completed in Q4 2019 and Q2 2021, respectively, more than 60% of the space was pre-leased. Phase 3 was delivered in November 2022. Current tenants are in the e-commerce, alternate energy, advanced manufacturing, and medical device industries.
The Silicon Valley industrial market is among the tightest in the country with 2.5% vacancy in Q2 2023, according to CBRE Research. Asking rates increased as demand remained steady and supply of quality space was limited. Fremont/Newark average asking rates increased in Q2 2023 even as vacancy held steady at 2.5%.
