international reach world class...berk/emery oakland richmond hayward san leandro union city...

407,556

769,644

340,161

1,351,390

490,230

675,538

2,313,275

Berk/Emery Oakland Richmond Hayward

San Leandro Union City Fremont/Newark

North I-880 Industrial Inventory: 56,823,753North I-880 Industrial Availability: 2,134,971North I-880 Industrial Availability Rate: 3.76%

I-880 Industrial Inventory: 80,125,631I-880 Industrial Availability: 3,855,598I-880 Industrial Availability Rate: 4.81%

Fremont/Newark Industrial Inventory: 55,613,739Fremont/Newark Industrial Availability: 5,782,568Fremont/Newark Industrial Availability Rate: 10.40%

Lee & Associates maintains an up-to-date database of all available properties and sold/leased properties.

Just as the market was setting new highs, we entered what is clearly an unprecedented moment in our Nation’s history. The COVID-19 pandemic will challenge our market and our Nation in more ways than what we ever could have imagined just a few weeks ago. The economy and local Industrial Market along the I-880 Corridor was put on hold, the pause button was hit, and everything stopped. Unlike the 2008 financial crisis which was economic fundamentals, this stoppage came by way of a health pandemic.

Capital Markets have shut down as a reset in values is expected, many sale transactions have broken down as a result. Tenants and Landlords are looking for answers as to how to handle this crisis, and what will the market look like.

In the coming months we anticipate a higher level of vacancy, lower lease rates and sale prices. The job losses created by this crisis will be the driving factor in all of this. It will be the job retention rate and job growth that will be critical to our recovery!

What will continue to be in demand is well located, functional,modern industrial/warehouse properties. Now more than ever tenants will need fast access to customers with faster deliver and drive times. Additionally properly functioning properties that allow smooth and quick truck staging and transitions will also be key amenities for tenants.

The East Bay/880 Corridor remains one of the strongest industrial/warehouse markets in the nation, and this will continue, however we will have some bumps in the road ahead.

We closed our office on Thursday March 12th and since have all been working remotely from our homes providing market information to our clients. Please reach out to us if you have questions about your lease, your building and what you can do to secure your future.

We appreciate your business and invite you to contact us with any questions or comments you may have regarding commercial properties in the East Bay/I-880 Corridor. We look forward to working with you!

- Craig Hagglund, SIOR, Managing PrincipalLee & Associates - Oakland

MARKET SNAPSHOT

I-880 Corridor Quarterly Report

INDUSTRIAL MARKETFIRST QUARTER 2020

www.lee-associates.com

338,2281,182,217

614,526

1,973,283

1,176,734

705,581

5,782,568

Berk/Emery Oakland Richmond Hayward San Leandro Union City Fremont/Newark

TOTAL AVAILABLE SF BY SUBMARKET

LOCAL EXPERTISEINTERNATIONAL REACHWORLD CLASS

407,556

769,644

340,161

1,351,390

490,230

675,538

2,313,275



407,556

769,644

340,161

1,351,390

490,230

675,538

2,313,275



407,556

769,644

340,161

1,351,390

490,230

675,538

2,313,275




QUARTER IN REVIEW

MARKET

Buildings Total SF Direct SF Sublease SF Available SF Direct Total

BERKELEY/EMERYVILLE

INDUSTRIAL/WAREHOUSE 418 9,010,816 124,484 23,419 147,903 1.38% 1.64%

FLEX/R&D 84 3,541,873 190,325 0 190,325 5.37% 5.37%

TOTAL 502 12,552,689 314,809 23,419 338,228 2.51% 2.69%

OAKLAND

INDUSTRIAL 1,239 22,350,513 793,980 19,770 813,750 3.55% 3.64%

MULTI TENANT/INCUBATOR 44 294,104 0 0 0 0.00% 0.00%

FLEX/R&D 117 1,999,229 28,859 0 28,859 1.44% 1.44%

WAREHOUSE/DIST 83 6,543,963 220,038 119,570 339,608 3.36% 5.19%

TOTAL 1,483 31,187,809 1,042,877 139,340 1,182,217 3.34% 3.79%

RICHMOND

INDUSTRIAL 287 7,010,171 13,500 329,589 343,089 0.19% 4.89%


FLEX/R&D 22 814,199 29,360 0 29,360 3.61% 3.61%

WAREHOUSE/DIST 38 4,397,369 187,181 54,896 242,077 4.26% 5.51%

TOTAL 369 13,083,255 230,041 384,485 614,526 1.76% 4.70%

MARKET TOTAL 2,354 56,823,753 1,587,727 547,244 2,134,971 2.79% 3.76%

INVENTORY AVAILABILITY AVAILABILITY RATE

NORTH I-880 AVAILABLE

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

6,500,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-900,000

-800,000

-700,000

-600,000

-500,000

-400,000

-300,000

-200,000

-100,000

0

100,000

200,000

300,000

400,000

Q208 Q209 Q210 Q211 Q212 Q213 Q214 Q215 Q216 Q217 Q218 Q219

NORTH I-880 ABSORPTION

AVAILABLE/ABSORPTION HISTORY


NORTH I-880 MARKET STATISTICSFIRST QUARTER 2020

INDUSTRIAL MT/INCUBATOR FLEX/R&D WHS/DISTRIBUTION

Q4 Q1


Q4 Q1


QUARTER IN REVIEW

BERKELEY/EMERYVILLE INDUSTRIAL

OAKLAND INDUSTRIAL

RICHMOND INDUSTRIAL


NORTH I-880 MARKET STATISTICSFIRST QUARTER 2020

INDUSTRIAL/WHS FLEX/R&D

Q4 Q1

QUARTERLY AVAILABLE SF COMPARISON



Notable Sales from the 1st Quarter:

• 80,000±SF on 7± Acres to Hagar Pacific | 72 98th Avenue

• 21,225±SF to Audi of Oakland | 7201 Oakport Street

• 21,000±SF S&A Investments | 8383 Capwell Drive

Notable Leases from the 1st Quarter:

• 93,398±SF to National Auto Parts | 6201 Coliseum Way*

• 79,497±SF Yard to Brownfield Auto Auction | 768 46th Avenue

• 61,000±SF to Nourish Green, LLC | 2861 Mandela Parkway

• 30,925±SF to Nor Cal In Line | 210 Hegenberger Loop

• 17,500±SF to Alicia K. Designs | 1154 57th Avenue

Notable Sale from the 1st Quarter:

• 15,250±SF to Shannon Moving & Storage | 691 S. 31st Street


• 707,820±SF to Amazon | Atlas & Giant Road

• 32,000±SF to Pegasus Solar | 100 W. Ohio Avenue

• 20,640±SF to Hero Arts | 1200 Harbour Way


• 13,800±SF to Tinker Now, LLC | 675-695 Cedar Street

• 3,470±SF to Fiddlehead Gardens | 2816 8th Street

Notable Lease from the 1st Quarter:

• 13,200±SF to Acme Scenery Co. | 2448 6th Street

• 12,370±SF to Lucid Machine Shop | 1266 45th Street

• 6,500±SF to Swift Navigation | 1368 Park Avenue

*Renewal & Expansion


MARKET

Buildings Total SF Direct SF Sublease SF Available SF Direct Total

HAYWARD

INDUSTRIAL 859 16,217,894 643,624 84,156 727,780 3.97% 4.49%

MULTI TENANT/INCUBATOR 162 2,150,290 66,657 4,410 71,067 3.10% 3.30%

FLEX/R&D 72 3,263,691 202,738 42,471 245,209 6.21% 7.51%

WAREHOUSE/DIST 229 21,804,178 629,044 300,183 929,227 2.88% 4.26%

TOTAL 1,322 43,436,053 1,542,063 431,220 1,973,283 3.55% 4.54%

SAN LEANDRO

INDUSTRIAL 414 13,304,002 891,472 71,871 963,343 6.70% 7.24%


FLEX/R&D 34 1,377,984 11,268 0 11,268 0.82% 0.82%

WAREHOUSE/DIST 94 7,426,903 174,418 27,705 202,123 2.35% 2.72%

TOTAL 569 22,679,551 1,077,158 99,576 1,176,734 4.75% 5.19%

UNION CITY

INDUSTRIAL 108 3,344,223 169,145 0 169,145 5.06% 5.06%

MULTI TENANT/INCUBATOR 21 377,117 18,007 0 18,007 4.77% 4.77%

FLEX/R&D 15 438,401 29,711 0 29,711 6.78% 6.78%

WAREHOUSE/DIST 104 9,850,286 334,499 154,219 488,718 3.40% 4.96%

TOTAL 248 14,010,027 551,362 154,219 705,581 3.94% 5.04%

MARKET TOTAL 2,139 80,125,631 3,170,583 685,015 3,855,598 3.96% 4.81%

INVENTORY AVAILABILITY AVAILABILITY RATE

QUARTER IN REVIEW

I-880 AVAILABLE

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q120-2,000,000

-1,750,000

-1,500,000

-1,250,000

-1,000,000

-750,000

-500,000

-250,000

0

250,000

500,000

750,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q120

I-880 ABSORPTION



I-880 MARKET STATISTICSFIRST QUARTER 2020


Q4 Q1


Q4 Q1


Q4 Q1


QUARTER IN REVIEW

HAYWARD INDUSTRIAL

SAN LEANDRO INDUSTRIAL

UNION CITY INDUSTRIAL


• 132,742±SF to Centerpoint Properties | 2376 Davis Avenue

• 49,520±SF to Lift Partners | 3200-10 Investment Boulevard


• 506,925±SF to Amazon | 2701 W. Winton Avenue

• 214,320±SF to East Bay Logistics | 1900-06 W. Winton Avenue*

• 105,062±SF to Amerco Real Estate Co. | 2391 W. Winton Avenue*

• 87,416±SF to Garibaldi & Co. | 21062-92 Forbes Street

• 61,764±SF to Beeline | 30941 San Clemente Street


• 75,200±SF to Lowes | 2001 Williams Street

• 48,902±SF to S&J Home Supplies, Inc. | 2955 Merced Street*

• 23,340±SF to Cintas | 777 139th Street*


• 55,632±SF to Faber Street Foodworks, LLC | 2801-09 Faber Street

• 27,450±SF to Compactor Management | 32420 Central Avenue


• 53,088±SF to Rapak | 29959 Ahern Avenue*

• 47,912±SF to Guardant Health, Inc. | 1701 Atlantic Court

• 19,320±SF to Worldpantry.com | 2917 Whipple Road

• 19,320±SF to Windy City Wire & Cable | 2933 Whipple Road


I-880 MARKET STATISTICSFIRST QUARTER 2020




*Renewal

*Renewal

*Renewal

INDUSTRIAL/WHS FLEX/R&D

Q4 Q1


MARKET

Direct SF Sublease SF Available SF Direct Total

FREMONT/NEWARK

INDUSTRIAL/WAREHOUSE 3,509,785 339,235 3,849,020 10.99% 12.05%

FLEX/R&D 1,690,836 242,712 1,933,548 7.14% 8.17%

MARKET TOTAL 5,200,621 581,947 5,782,568 9.35% 10.40%

23,675,000

55,613,739

INVENTORY

Total SF

31,938,739

AVAILABILITY AVAILABILITY RATE

QUARTER IN REVIEW

FREMONT/NEWARK INDUSTRIAL


• 88,564±SF to 47071 Bayside LLC | 47071 Bayside Parkway

• 58,582±SF to Prologis | 6600 Smith Avenue


• 369,180±SF to Amazon | Pacific Commons South, Bldg. 3

• 246,450±SF to Supermicro Computer | 48350 Fremont Blvd.*



• 45,940±SF to SMTC Corp. | 431 Kato Terrace

FREMONT/NEWARK AVAILABLE

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2012 2013 2014 2015 2016 2017 2018 2019 Q120

-1,000,000

-800,000

-600,000

-400,000

-200,000

0

200,000

400,000

600,000

2012 2013 2014 2015 2016 2017 2018 2019 Q120

FREMONT/NEWARK ABSORPTION



FREMONT/NEWARK MARKET STATISTICSFIRST QUARTER 2020


*Renewal


555,000±SF, SAN LEANDRODEVELOPER: TRAMMEL CROW

Under ConstructionClass “A” Warehouse

100% Leased

814,852±SF, FREMONTDEVELOPER: CONOR

ESFR K-22 Heads100% Leased Class "A" Warehouse

182,408±SF, RICHMONDDEVELOPER: BLACK CREEK GROUP

Class "A" Industrial DevelopmentNew Construction

2,530,000±SF, FREMONTDEVELOPER: OVERTON MOORE

11 Buildings on 143± AcresClass "A" Advanced Manufacturing

Under Construction

154,619±SF, SAN LEANDRODEVELOPER: BLACK CREEK GROUP

Class “A” DevelopmentEstimated Completion: Q2 2020

506,925±SF, HAYWARDDEVELOPER: BLACK CREEK GROUP

ESFR Sprinklers100% Leased Class "A" Warehouse

409,782±SF, NEWARKDEVELOPER: PANATTONI

Class "A" Advanced Manufacturing Space3 Buildings, 84% Pre-Leased

604,796±SF, NEWARKDEVELOPER: OVERTON MOORE

Class "A" Advanced Manufacturing Space4 Buildings, 35% Pre-Leased

231,660±SF, OAKLANDDEVELOPER: PROLOGIS

Phase II - Class “A”Warehouse Development

50% Leased

COMP

LETE

D

COMP

LETE

D

COMP

LETE

D

COMP

LETE

D


UNDER CONSTRUCTIONFIRST QUARTER 2020

LEAS

ED

LEAS

ED

LEAS

ED

LEAS

ED

TO AM

AZON

TO AM

AZON

TO AM

AZON

TO AM

AZON

LEAS

ED

LEAS

ED

3 BUI

LDIN

GS

3 BUI

LDIN

GS


WAREHOUSE - 506,925± SF LEASED2701 W. WINTON AVENUE,HAYWARD

AMAZON

WAREHOUSE - 707,820± SF LEASED2995 ATLAS ROAD, RICHMOND

AMAZON

WAREHOUSE - 373,957± SF LEASEDBUNCHE @ CUSHING PKWY, FREMONT

AMAZON (BLDG 8)

INDUSTRIAL - 364,378± SF LEASED2950 MAIN STREET, ALAMEDA

ANNEX

WAREHOUSE - 369,180 SF LEASEDBUNCHE @ CUSHING PKWY, FREMONT

AMAZON (BLDG 3)

INDUSTRIAL - 223,827± SF LEASED970 MCLAUGHLIN AVENUE, SAN JOSE

AMAZON


TRANSACTIONSFIRST QUARTER 2020

FLEX - 88,564± SF SOLD47071 BAYSIDE PARKWAY, FREMONT

47071 BAYSIDE LLC

WAREHOUSE - 132,742± SF SOLD2376 DAVIS AVENUE, HAYWARD

CENTERPOINT PROPERTIES

INDUSTRIAL - 80,000± SF ON 7± ACRES SOLD72 98TH AVENUE OAKLAND

HAGAR PACIFIC

WAREHOUSE - 55,632± SF SOLD2801-09 FABER STREET, UNION CITYFABER STREET FOODWORKS, LLC

INDUSTRIAL - 58,582± SF SOLD6600 SMITH AVENUE NEWARK

PROLOGIS

INDUSTRIAL - 49,520± SF SOLD3200 INVESTMENT BLVD., HAYWARD

LIFT PARTNERS



EXCLUSIVE LEE LISTINGSFIRST QUARTER 2020

FOR LEASEAVAILABLE: 107,000± SF

45401 RESEARCH AVENUE, FREMONT

FOR LEASEAVAILABLE: 13.5± ACRES

6756-92 CENTRAL AVENUE, NEWARK


31500 HAYMAN STREET, HAYWARD

FOR LEASE/SALEAVAILABLE: 45,000± SF

14700-08 DOOLITTLE DRIVE, SAN LEANDRO

FOR SUBLEASE AVAILABLE: 54,896± SF

2100 ATLAS ROAD, RICHMOND

FOR SUBLEASEAVAILABLE: 37,000± SF

30587 HUNTWOOD AVENUE, HAYWARD


49026 MILMONT DRIVE, FREMONT


2055-81 ADAMS AVENUE, SAN LEANDRO

FOR SALEAVAILABLE: 32,550± SF

536 CLEVELAND AVENUE, ALBANY


1500 ATLANTIC STREET, UNION CITY

FOR SUBLEASEAVAILABLE: 124,194± SF

7150 PATTERSON PASS ROAD, LIVERMORE

FOR SALE AVAILABLE: 51,494± SF

22380 FOOTHILL BOULEVARD, HAYWARD



YOUR OAKLAND TEAMFIRST QUARTER 2020

INDUSTRIAL AGENTSBrian Barden Principal 510-903-7616 [email protected] Barnes Principal 510-903-7619 [email protected] Davidson Principal 510-903-7614 [email protected] Drew Principal 510-903-7613 [email protected] Fischer Principal 510-903-7602 dfischer @lee-associates.comCraig Hagglund, SIOR Principal 510-903-7611 [email protected] Lucas Principal 510-903-7607 [email protected] Martens Principal 510-903-7605 [email protected] O'Brien Associate 510-903-3023 [email protected] Pearson Principal 510-903-7610 [email protected] Scarpinato Principal 510-907-3022 [email protected] Schofield, SIOR Principal 510-903-7608 [email protected] Schofield Principal 510-903-7604 [email protected] Stoddard Principal 510-903-7618 [email protected] Vance Associate 510-907-3021 [email protected]

INVESTMENT AGENTSRick Bland Principal 510-903-7609 [email protected] Street Associate 510-903-7615 [email protected] Warren Principal 510-903-7617 [email protected]

OFFICE AGENTSNeil Cowperthwaite Associate 510-903-7603 [email protected] Jones Principal 510-903-7606 [email protected] McCarty Principal 510-903-7601 [email protected] McGlynn Associate 510-903-7612 [email protected]

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international reach world class...berk/emery oakland richmond hayward san leandro union city...

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