Why Bay Area Industrial Landlords are Celebrating
Avison Young principal Kevin Ahaesy (here with associate JW Krumpholz) tells Bisnow the industrial market is the strongest it’s been in years. The two just sealed an eight-year lease with meal-delivery service HelloFresh for a 109k SF industrial freezer distribution facility in Richmond (below), valued at $13M. Kevin tells us overall vacancy is less than 5% along the I-880 corridor, making it a very landlord-friendly market. The duo repped SoCal-based Highridge Provender, while the tenant was repped by Colliers. The facility can grow another 50k SF.
Kevin tells us for highly sought after Class-A warehouse space, landlords have the opportunity to handpick tenants and the term they are willing to commit to. In addition, due to these market conditions, landlords have been able to push rates higher than ever. Kevin says it's clearly a landlord's market for industrial space, and he doesn't see that changing anytime soon.
