"Pacific Union continues its aggressive move into the Tri-Valley real estate market with this purchase," says Dan Bergen of Colliers International, who brokered the land sale on both sides. "We think that with the project's proximity to downtown Livermore and Lawrence Livermore National Laboratory will be a definite strength in attracting new users."
Pacific Union Commercial Development's president, Bill Drummond, says that the firm plans to build a 140,000-sf industrial/office flex development for the property, with building sizes ranging from 8,000 to 41,000-sf.
The buildings, which will either be available for lease or sale, will have separate street identity, ideally suited for sales/service, R&D and technical services. Construction is expected to commence in mid-2000 and completed in 2003.
Mike Lloyd of Colliers says that the Tri-valley will continue to see industrial growth in Livermore.
"We expect this trend to continue throughout the next few years because of a lack of product in Pleasanton, prices 30 to 50 percent higher than Livermore and a location further from the Central Valley workforce," Lloyd says. "The future for the industrial product left in Pleasanton will likely see its conversion to office/flex and R&D over the next few years."
According to Colliers' 3rd quarter market report, the current industrial vacancy rate in Livermore is 7%, the current vacancy rate is 11.6%, and the R&D vacancy is 16.5%. One of the reasons for the high vacancy rates is the amount of product that has come into Livermore in the past year. However, Colliers expects the inventory to shrink as more companies move to Livermore.
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