AMB Lands Tenants for Three Value-Add Assets

SUNNYVALE, CA-AMB Property Corp. has found tenants for three formerly vacant light industrial buildings that it says it has remade into class A R&D facilities. The industrial REIT says it leased approximately 132,000 sf in the buildings, which total 177,000 sf.

All three buildings saw extensive exterior and interior retro-fits and seismic upgrades. As a result, AMB executives says the buildings “have many advantages of new buildings at a much lower occupancy cost than other competing class A products.”

Mark Hansen, AMB’s SVP of value-add conversions, tells GlobeSt.com that new R&D office buildings command rates closer to $3.25 per sf (NNN), so its highly renovated product for 75% less has been attractive to tenants.