The 24,118-sf lease soaks up 27% of Bedford's development, an 88,500-sf, two-building project called The Vines. Bedford chief executive Peter Bedford EVP says the lease is "a good start" for the $9-million endeavor.
Bedford EVP Steve Silla tells GlobeSt.com the two buildings represent Bedford's sixth development in the industrial park, which houses the bulk of Bedford's Napa Valley holdings. The other five developments total 415,107 sf and are "pretty well leased," he says.
Looking ahead, Silla says Bedford still has about 18 acres to develop in the park in two development sites. One of the sites is 9.74 acres and the other is 8.27 acres, he says.
As of June 30, 2005, Bedford owned 7.2 million sf in 87 operating properties, 57 of which are industrial properties and 30 of which are suburban office properties. Land held for development totals 40 acres in 11 parcels. Its properties are located in California, Arizona, Washington, Colorado, Oregon, and Nevada.
In its quarterly report last month, the company says demand has slowed in Napa County during the past three years, but vacancy rates have not climbed to the extent they have in Silicon Valley. "Currently we are seeing an improvement in demand for space and a reduction in leasing concessions in our northern California markets, particularly in Contra Costa County and Napa County," states the report.
On the downside, the company said that over the next three years, it will be facing significant lease rollovers, with the biggest chunk occurring in Northern California. During the remainder of 2005, in 2006, and in 2007, leases representing 11%, 15%, and 16% of annualized base rent, respectively, will expire, according to the quarterly report.
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