OAKLAND, Calif. – May 10, 2022 — The Northwest region of Duke Realty (NYSE: DRE), a leader in sustainable industrial real estate development and the largest domestic-only logistics REIT (Real Estate Investment Trust), announces three new projects in San Francisco Bay Area submarkets that are experiencing steady and sustained rent growth, but have limited available industrial space. The three projects, previously mentioned in the company’s Q1 2022 earnings call, include:
- a 302,772-square-foot speculative development in San Jose,
- a 153,803-square-foot speculative development in Richmond, and
- a 157,725-square-foot industrial facility in Hayward.
“The San Francisco Bay Area is experiencing demand for space from traditional industrial users and tech related tenants while challenged with evolving restrictions to new construction,” said Drew Hess, senior vice president of Duke Realty’s Northwest region, which includes the Northern California and Seattle markets. “Our infill redevelopment investments are providing much needed supply. We are finding that customers have expanding supply chain needs and are looking for state-of-the-art industrial facilities in one of the nation’s busiest logistics markets — making our properties highly desirable.”
Duke Realty’s latest speculative development in San Jose sits on 17.4 acres at 5853 Rue Ferrari. What was two office facilities will now be a modern 302,772-square-foot industrial facility with 42-foot minimum clear height, 47 dock high doors, 108 truck trailers spaces, 296 cars spaces and will provide up to 12,000 amps of power. The site has excellent access to Highway 101 and Silicon Valley Boulevard and sits just ten miles from downtown San Jose. Listing brokers include Chip Sutherland, Rob Shannon and Ben Knight with CBRE.
The company’s speculative development in Richmond is on 7.9 acres at 731 West Cutting Boulevard. Previously, the site was underutilized with three obsolete structures and eight large carbon dioxide tanks. It will now house a 153,803-square-foot industrial building with 36-foot minimum clear height, 24 dock high doors, 36 truck trailer spaces and 140 car spaces. The site is adjacent to I-580 and has immediate access to Richmond Parkway, a key trucking route to northbound I-80 — allowing for various access points to the East Bay. Listing brokers include Jason Ovadia, Mike Murray, Patrick Metzger and Greg Matter at JLL.
In December, the company started construction at 24493 Clawiter Road in Hayward. The planned industrial facility will be 157,725 square feet with a 36-foot minimum clear height, 24 dock high doors, 65 trailer parking stalls and 79 car spaces. The project is strategically situated near the San Mateo Bridge and I-880 with access to the Port of Oakland, San Francisco International Airport, Oakland International Airport and is within a 40-minute drive to 80 percent of the Bay Area and the San Francisco Peninsula. Listing brokers are Bob Ferraro, Kevin Hatcher and Chris Van Keulen with CBRE.
“Northern California’s industrial market continues to see strong demand given its dynamic consumer base, limited supply and high-barriers to entry,” said Janet Galvez, vice president of leasing and development for Duke Realty in Northern California. “We are working with experienced local brokers and clients looking for modern, efficient facilities with heavy power and flexible floor plans that can accommodate a variety of uses.”
All facilities are being constructed to LEED® certification standards — meeting requirements for environmentally sustainable construction and site development, water savings, energy efficiency and construction waste management. These innovative and sustainable facilities are expected to be complete in early 2023. With the addition of these three properties, Duke Realty’s Northern California portfolio is at 4.1 million square feet.