East Bay 2Q14 · Dr. Pepper Snapple Group (Renewal) 2009 Farallon Dr. 125,000 SF San Leandro...
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Vacancy Rates Quoted Rates New Construction (in Square Feet) East Bay 2Q14 Industrial Report Unemployment in the East Bay market of Alameda and Contra Costa county dropped from 7.4% to 5.7%, a 140 basis point decrease, since the second quarter of 2013. With an increase of 24,000 jobs, the employment increased from 1,221,000 to 1,245,000, compared to the second quarter of 2013. The East Bay market had an unemployment rate of 5.7% in the second quarter, which is 60 basis points lower than the national unem- ployment rate. In the second quarter, the East Bay market had 1,780,796 square feet under construction -- all located in the 880 Cor- ridor market. Two projects that will be completed in the third quarter of 2014 are 574,640 square feet at the Cherry Logistics Center and 275,018 square feet for the ThermoFisher HQ. The East Bay has been negatively impacted by vacancy of obsolete space and spaces that cannot meet new use needs of users searching for less than 50,000 square feet of space. Comstock Realty Partners has purchased 19.16 acres in San Leandro for $30,000,000, with 421,538 square feet of indus- trial Class B warehouse space leased by Energy Recovery, Inc. and 6 acres of developable land. Embarcadero Capital Partners LLC has purchased 104,741 square feet on 6.70 acres for $18,800,000, currently leased by HP Autonomy and Gatan, Inc. The East Bay continues to experience a quarterly increase in quoted rates for warehouse and flex space. Since the second quarter of 2013, quoted rates have increased from $7.67 to $8.42 and vacancy has dropped from 8.9% to 7.7%. Trends for 2Q14 NET ABSORPTION CONSTRUCTION DELIVERIES QUOTED RATES Industrial 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Flex Warehouse $0 $2 $4 $6 $8 $10 $12 $14 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Flex Warehouse 0.0 0.5 1.0 1.5 2.0 2.5 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Millions Deliveries Under Construction
Transcript of East Bay 2Q14 · Dr. Pepper Snapple Group (Renewal) 2009 Farallon Dr. 125,000 SF San Leandro...
Vacancy Rates
Quoted Rates
New Construction (in Square Feet)
East Bay 2Q14Industrial Report
Unemployment in the East Bay market of Alameda and Contra Costa county dropped from 7.4% to 5.7%, a 140 basis point decrease, since the second quarter of 2013. With an increase of 24,000 jobs, the employment increased from 1,221,000 to 1,245,000, compared to the second quarter of 2013. The East Bay market had an unemployment rate of 5.7% in the second quarter, which is 60 basis points lower than the national unem-ployment rate.
In the second quarter, the East Bay market had 1,780,796 square feet under construction -- all located in the 880 Cor-ridor market. Two projects that will be completed in the third quarter of 2014 are 574,640 square feet at the Cherry Logistics Center and 275,018 square feet for the ThermoFisher HQ. The East Bay has been negatively impacted by vacancy of obsolete space and spaces that cannot meet new use needs of users searching for less than 50,000 square feet of space.
Comstock Realty Partners has purchased 19.16 acres in San Leandro for $30,000,000, with 421,538 square feet of indus-trial Class B warehouse space leased by Energy Recovery, Inc. and 6 acres of developable land. Embarcadero Capital Partners LLC has purchased 104,741 square feet on 6.70 acres for $18,800,000, currently leased by HP Autonomy and Gatan, Inc.
The East Bay continues to experience a quarterly increase in quoted rates for warehouse and flex space. Since the second quarter of 2013, quoted rates have increased from $7.67 to $8.42 and vacancy has dropped from 8.9% to 7.7%.
Trends for 2Q14
NET ABSORPTION
CONSTRUCTION DELIVERIES
QUOTED RATES
0% 2% 4% 6% 8%
10% 12% 14% 16% 18%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Flex Warehouse
0% 2% 4% 6% 8%
10% 12% 14% 16% 18%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Flex Warehouse
Industrial
$0
$2
$4
$6
$8
$10
$12
$14
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Flex Warehouse
0.0
0.5
1.0
1.5
2.0
2.5
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Millions
Deliveries Under Construction
0% 2% 4% 6% 8%
10% 12% 14% 16% 18%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
Flex Warehouse
$0
$2
$4
$6
$8
$10
$12
$14
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
Flex Warehouse
0.0
0.5
1.0
1.5
2.0
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Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
Millions
Deliveries Under Construction
SUBMARKET # BLDGS. TOTAL RBA VACANCY QUOTED RATES NET DELIVERIES UNDER (SF) (%) ($/SF/YR) ABSORPTION (SF) (SF) CONSTRUCTION (SF)
680 Corridor North 407 8,134,119 9.2% $11.33 51,516 0 0
680 Corridor South 820 26,193,371 7.3% $9.71 (75,898) 0 0
80 Corridor 1,172 30,978,677 9.4% $11.27 74,927 0 0
880 Corridor 3,412 141,734,521 8.3% $7.79 247,243 574,640 1,780,796
Highway 4 633 17,552,662 7.2% $7.73 41,041 0 0
Napa County 467 16,454,165 5.8% $9.28 36,521 103,400 0
Oakland 1,633 39,875,328 5.0% $7.01 8,546 0 0
Market Overview:
East Bay 2Q14Industrial Report
Significant Lease Transactions:Tenant Address Size City
Amazon 38811 Cherry St 574,640 SF Newark
Owens Corning 21105-21111 Cabot Blvd 195,000 SF Hayward
Futuris Automotive, Inc. 6601 Overlake Pl 160,000 SF Newark
Golden Solar Power Group 1321 Canal Blvd 160,000 SF Richmond
Quanta Computer, Inc. 45101-45169 Industrial Dr 125,501 SF Fremont
Dr. Pepper Snapple Group (Renewal) 2009 Farallon Dr. 125,000 SF San Leandro
Pacific Coast Warehouse Company (Renewal) 7025-7055 Central Ave 97,034 SF Newark
American Tire Distributors 2600 Goodrick Ave 68,000 SF Richmond
Significant Sales Transactions:Buyer Address Price City
Comstock Realty Partners 1717-1739 Doolittle Dr $30,000,000 San Leandro
Embarcadero Capital Partners LLC 5758-5794 W Positas Blvd $18,800,000 Pleasanton
Trumark Homes 37950-38200 Cedar Blvd $17,000,000 Newark
Terreno Realty Corporation 2054-2070 Burroughs Ave $13,300,000 San Leandro
Daylight Transport, LLC 2340-2346 Industrial Pky W $10,000,000 Hayward
KTR Capital Partners LP 30526 San Antonio St $9,400,000 Hayward
Preface, LLC 830 Marina Way St $8,000,000 Richmond
BizLink Technology, Inc. 47211-47241 Bayside Pky $7,064,500 Fremont
Brentwood Medical Partners LLC 2625 Shadelands Dr $5,700,000 Walnut Creek
Industrial
East Bay Industrial Market Report2Q’14475 14th Street Suite 700Oakland, CA USA 94612+1 510 336 4712
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