Finisar recently acquired a company in Fremont, CA and will transfer workers from there to Hayward as well as hold on to its Sunnyvale property, a company source tells GlobeSt.com.
"Finisar needed more room for its operations," says Greig Lagomarsino, senior vice president in the Oakland office of Colliers International, which brokered the deal for Spieker Properties. "The lack of available space in Silicon Valley is driving companies to look elsewhere." Rick Keely, also from Colliers International, assisted Lagomarsino with the transaction and Ted Eyre from BT Commercial represented Finisar.
The company signed a five-year lease for 75 cents triple net. In Silicon Valley, the same space would easily go for triple the cost, according to Lagomarsino. He predicts that, as prices continue to soar, businesses will keep on migrating to the East Bay to take advantage of the lower rents there.
The park's proximity to Interstate 880 via Whipple Road or Industrial Parkway makes it a desirable location for businesses, says Lagomarsino. "Companies realize they can get well-located offices with close proximity to Silicon Valley at a much cheaper price," he tells GlobeSt.com.
The industrial park is comprised of 630,944 sf of light industrial and warehouse/distribution buildings, which Menlo Park-based Spieker Properties acquired roughly two years ago. The exact price Spieker Properties paid was unavailable, but the property--along with six others they own on the same street--were assessed at approximately $30 million to $35 million at the time of purchase.
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