Livermore’s Q4: Big Investors Come to Play in East Bay Industrial Market

Cushman & Wakefield, Livermore, GIC Real Estate, EQT Exeter, AEW Capital Management, Crow Holdings, Quatman LLC, Black Mountain Properties
Courtesy of Tyler Casey

By Meghan Hall

Livermore, located just before the Altamont Pass, was once considered to be on the fringes of the Bay Area. Now, with a booming population and plenty of land for development, it has captured the interest of investors, especially those who are targeting the industrial sector. A fourth quarter report released by Cushman & Wakefield emphasizes that during the last few months of the year, major investors continued to wheel and deal in the submarket, signifying that strong investor demand will continue into 2022.

There were three transactions of note that closed during the third quarter. In the largest deal, 6538 Patterson Pass Rd. sold for $18.9 million, or $191 per square foot. EQT Exeter sold the 98,950 square foot property to GIC Real Estate.

In a second deal to close, AEW Capital Management acquired 6755 Brisa from Crow Holdings for $17.6 million, or $137 per square foot. In a third transaction, Black Mountain Properties sold 4771 Arroyo Vista to Quatman LLC for $15.9 million, or $225 per square foot. The asset totals 70,560 square feet.

Cushman & Wakefield notes in its report that during the end of the year, the Livermore submarket had been largely “overshadowed” by other transit-oriented locations such as Oakland. However, the submarket is still one to watch  as fundamentals continue to improve.

Rents rose to $09.6 per square foot, an increase of $0.14 year-over-year. From 2011 to 2017, rents rose, on average, 11.6 percent per year, peaking at $10.08 per square foot in 2017. Rent growth has plateaued, notes Cushman & Wakefield. However, the East Bay Pleasanton, where Livermore is located, remains less expensive than other nearby areas. While no current expansion or relocation requirements are being tracked, cheaper rents could continue to serve as a lure for many companies looking for more space.

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