REDWOOD CITY, CA–A long-term industrial lease was signed by Carbon3D Inc. at 1089 Mills Way. At 87,000 square feet, the transaction represents the city's largest new industrial lease in recent history. Mike Davis and Michael Draeger of Colliers International's Redwood City office represented the landlord, 1089 Mills Way LLC, in the transaction. Carbon3D Inc. is a Silicon Valley-based company that will be expanding and relocating to 1089 Mills Way from another location in Redwood City.
Draeger tells Globest.com: "The market for industrial space on the Peninsula, especially south of Highway 92, is one of the tightest in the country and opportunities to lease properties like 1089 Mills have become increasing rare. Many of the larger industrial properties in the market have been redeveloped or converted for office or residential uses and there are more large-scale conversions in the pipeline. For example, Facebook's acquisition of Menlo Science and Technology Park in Menlo Park, CA earlier this year will eventually eliminate another 1 million square feet of warehouse and R&D space from building base. The market has responded as expected, with vacancy reaching the low single digits and rents have spiked as tenants compete for space."
The 87,000 square foot office/warehouse facility features 34,000 square feet of office space, 53,000 square feet of warehouse/manufacturing space, 24 foot clear height and is located minutes from Redwood City's downtown core.
“This is the largest office/warehouse lease in Redwood City in recent history and brings the effective vacancy rate for this product type to 0%. The tenant plans to invest significant capital into the property to create a first-class headquarters, manufacturing and R&D facility,” said Davis.
Colliers International's market research indicates that vacancy for industrial product in San Mateo County is down 33%, year over year, currently at 2.65%. Average asking rent has increased 18%, year over year.
"It was a pleasure working with the ownership to market and lease 1089 Mills Way. We generated a great deal of interest and in the end there were multiple high-quality tenants competing to lease the property. The new tenant, Carbon3D Inc., has developed an innovative new technology for layerless 3D printing that was notably featured this year on stage at TED. We were very impressed with Carbon3D's leadership, technology and all the people behind it," Draeger concludes.
Colliers Redwood City also brokered the sale of another Redwood City, CA property, The Capri Apartments, an 85-unit apartment building, according to Rick Knauf, executive managing director of the Colliers Redwood City office. The property sold for $25.750 million. Don Sung, associate vice president at Colliers, along with Larry Aikins of Terrace Associates handled the transaction.
The Capri Apartments are located at 1491 Hess Rd., 441 Poplar Ave. and 403 Poplar Ave. The property features a unit mix of 34 two-bedroom/two-bath units, 49 one-bedroom/one-bath units, one studio/one-bathroom unit, plus one one-bedroom/one-bath unit currently used as an office. As previously reported, two other Redwood City, CA apartment properties sold earlier this spring.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
