Longer Build Time Means Surrounding Industrial Space is More Valuable
Dermody’s recently acquired Goodrick Logistics Center consists of 2589 Goodrick, currently available for lease, and 2593 Goodrick, which is fully leased to an international mattress distributor.
RICHMOND, CA—Although the health crisis and economic slowdown are devastating in many ways, there are silver linings popping up within the turmoil throughout the commercial real estate industry. In Dermody Properties’ recent acquisition of Goodrick Logistics Center, this silver lining takes the form of value along with an e-commerce function, says George Condon, West Region partner for Dermody Properties.
“The planned projects near our new buildings will take longer than expected to entitle and construct, making the available space in our new building more valuable than we anticipated,” Condon tells GlobeSt.com.
The logistics center consists of two class-A e-commerce and distribution facilities at 2589 and 2593 Goodrick Ave. 2589 Goodrick is currently available for lease and can accommodate one or three tenants ranging from 15,000 to 57,872 square feet. 2593 Goodrick is fully leased to an international mattress distributor.
“These buildings were developed to the highest institutional standards and in a location that offers access to the East Bay and the North Bay,” said Condon. “The available space is ideal for multiple users including regional and last-mile e-commerce distribution, retail, consumer products and durables, and manufacturers.”
2589 Goodrick Avenue was built in 2018 and is the only available newly constructed building smaller than 200,000 square feet in the East Bay. The building features a 24-foot clear height, 10 drive-in doors, 75- by 65-foot column spacing, LED warehouse lighting and an ESFR fire protection system.
The property is within 15 miles of the Port of Oakland, with immediate proximity to Richmond Parkway, Interstate 80 and Interstate 580.
“This availability at 2589 Goodrick Avenue offers a rare opportunity in this highly sought-after industrial market,” said Shelagh Danna, vice president at Dermody Properties. “Its strategic and central location in the core of the Bay Area will be a significant advantage for companies in a broad range of established and emerging industries.”
Corporate neighbors of Goodrick Logistics Center include UPS, Whole Foods, Chevron, Safeway, Conoco Phillips and Costco Wholesale.
Mark Detmer, Bo Mills and Ryan Sitov, all of JLL, represented Dermody Properties in the sale. Jason Ovadia, Patrick Metzger, Eddie Shuai and Mike Murray, also of JLL, will be the leasing agents for the property.
In the first quarter, the Oakland I-80/I-880 Corridor’s industrial market experienced another strong stretch as net absorption posted 1 million square feet and gross absorption was nearly 2.4 million square feet, according to a Colliers International report. The vacancy increased slightly from 2.9% to 3% as 1.17 million square feet of industrial buildings were completed in the first quarter. Overall asking rents in the quarter increased by $0.03 to $1.00 per square foot per month triple net.