Bay Area Class-A Logistics Inventory is Dwindling
Tenant demand is at an all-time high, as are rental rates and occupancy costs but Interstate 80 Logistics Center will offer tenants an institutional-quality alternative for logistics, distribution and e-commerce operations.
FAIRFIELD, CA—As more logistics companies clamor for space in the Bay Area, developers are grappling with this demand in a variety of ways. One recent example is Interstate 80 Logistics Center, which is under now construction.
“Interstate 80 Logistics Center offers tenants an exceptional location in a quality business park from which to serve the supply-constrained Northern California distribution market,” says Steve Arthur, partner, Ridgeline Property Group LLC. “The projects’ modern specifications will suit the needs of today’s distribution tenants.”
Ridgeline Property Group, together with its investment partner, USAA Real Estate, recently broke ground on the 378,405-square-foot class-A logistics facility. The project is expected to be completed in the summer of 2019.
Located at 2200 Courage Dr. in a business park setting, Interstate 80 Logistics Center is well-situated to serve the entire region. The project will be developed on a 19.6 net acre site fronting on Highway 12, located just 1 mile from Interstate 80, the east-west route connecting the Bay Area/Oakland to Sacramento and the Central Valley.
The project features include 36-foot clear height, cross-dock design, 69 dock-high doors, four drive-in doors, 56- by 60-foot column spacing with 60-foot speed bays, 4,000 AMPS of power, thermoplastic polyolefin roof, ESFR sprinkler system, 7 inch-thick reinforced slab, 31 dedicated trailer parking spaces and 192 auto parking spaces.
The project is being marketed for lease by Glen Dowling, Chris Neeb and Matt Bracco of Jones Lang LaSalle. Interstate 80 Logistics Center was designed by HPA Architecture and will be constructed by Millie and Severson General Contractors.
“The supply of class-A logistics inventory in the Bay Area is limited,” Arthur tells GlobeSt.com. “Tenant demand is at an all-time high, as are rental rates and occupancy costs. Interstate 80 Logistics Center is well positioned to service the Bay Area and Northern California, offering tenants an economically viable institutional-quality alternative for logistics, distribution and e-commerce operations, as well as for manufacturers. Ridgeline elected to develop in Fairfield, given the city’s business-friendly environment and welcoming partner-like approach, in addition to its robust labor supply.”
To be sure, this type of new industrial construction in Solano and Napa counties continues to be driven by low vacancy rates throughout the region. The combined vacancy rate now stands at 5.7%, down from 6.4% in the prior quarter. There was 317,832 square feet completed in the third quarter, 384,277 square feet currently under construction and nearly 5 million more square feet planned, according to a recent report by Colliers International.