Industrial Effective Vacancy Hits Zero

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.”