NORTH SAN JOSE—Construction has commenced on MidPoint@237, the only advanced manufacturing site of its magnitude in Silicon Valley. The project will have prominent entry features, interiors to suit, 28-foot clear heights, heavy-load power, ESFR sprinkler systems and is designed to achieve LEED® Silver certification.
The initial project is to consist of three, class-A advanced manufacturing buildings, totaling approximately 600,000 square feet. The buildings will be constructed simultaneously by Trammell Crow Company and joint venture partner, Principal Real Estate Investors, and are scheduled for completion in third quarter 2016. The venture has also designed four, class-A office/R&D buildings totaling approximately 400,000 square feet with construction anticipated to start early 2016.
Will Parker, principal with Trammell Crow Company's Northern California business unit, tells GlobeSt.com: "As of Q3 2015, San Jose–North's Industrial market had a net rentable area of 9,467,675 square feet and a total vacancy of 0.7%. Overall, the Silicon Valley Industrial market followed a record setting pace with its ninth straight quarter of positive net absorption and industrial space is becoming increasingly scarce. With tenant demand continuing to rise (9% increase from Q2 2015) and showing no sign of decreasing, we believe Midpoint@237 will provide modern industrial space in a highly coveted location at the top of Silicon Valley's Golden Triangle."
The advanced manufacturing project occupies a rare infill site that is visible to Highway 237, and minutes to both Moffett Park and Interstate 880. This central location facilitates easy access both to the San Francisco Peninsula and to the 880 Corridor leading to the Port of Oakland.
"Principal Real Estate Investors is excited about bringing much needed state of the art advanced manufacturing space to a market that has been underserved for years. This development represents our continued long-term partnership with the Trammell Crow Company across the US," says Mike Benson, assistant managing director of Principal Real Estate Investors.
The project is being marketed by Rob Shannon and Chip Sutherland of CBRE San Jose.
"San Jose has become the nation's premier destination for advanced tech manufacturing and high-value fabrication. MidPoint@237 will provide the state-of-the-art facilities that Silicon Valley manufacturers require for full-scale production of next-generation products," said mayor Sam Liccardo. "I thank Trammell Crow Company and Principal Real Estate Investors for their investments in North San Jose, and look forward to working with them on growing our manufacturing sector."
As previously reported, another North San Jose property was sold recently.
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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.
