Two Leases Reflect Staying Power of Online Retail

The property is being redeveloped to accommodate the industrial tenant’s needs.

HAYWARD, CA—With e-commerce retailers such as Amazon.com changing shipping expectations for consumers around the world, this translates to a strong demand for infill distribution space. As an indication of that activity, DCT Industrial Trust Inc. has executed two full-building e-commerce leases totaling 497,000 square feet. In Hayward, DCT executed a 297,000-square-foot lease for a current redevelopment project at 22290 Hathaway St. On 12 acres of land, the property at the time of purchase was 394,000 square feet and is being redeveloped to accommodate the industrial tenant’s needs. DCT started redevelopment in February 2016 and completion is slated for third quarter 2016. DCT’s projected total investment in the asset is $32 million, according to DCT’s 2015 year-end operating results. The tenant is expected to take full occupancy of the building in October upon the completion of the improvements. DCT has owned the property for one year. David Haugen , senior vice president for DCT Industrial Northern California, tells Globest.com:  “This was a complicated and exciting project that has turned out great with the full-building pre-lease. We feel fortunate since we can now accommodate the tenant by integrating its needs with our construction schedule. The project is in an ideal location–only one block off I-880 and in between the Highway 92 and 238 interchanges.” In the LAX submarket of Los Angeles, DCT executed a 200,000-square-foot lease with a global Internet-based retailer at 2815 W El Segundo Blvd. The tenant took occupancy of the full building immediately. “We are very pleased to announce the execution of these two full-building leases,” said Bud Pharris , managing director, west region for DCT Industrial. “The recent completion of the leases with two different e-commerce companies reflects the continued and rapid growth of Internet-based retailing. Consumers are now expecting products to arrive even faster from their online orders, translating into a strong demand for quality infill distribution space.”