Rivian Lists East Bay Logistics Center for Sublease
Haywood complex, under construction, pre-leased by Amazon's EV truck producer.
Rivian Automotive, the struggling EV manufacturer, has listed for sublease a 350K SF Bay Area warehouse that is still under construction.
Rivian signed a lease last July for the two-building LogistiCenter @92, an industrial campus being built by Dermody Properties at 25500 Clawiter Road in Haywood on a 16-acre site that was formerly occupied by a Berkeley Farms milk processing plant.
Cushman & Wakefield is marketing the sublease, according to a report in the San Francisco Business Times.
Earlier this year, Rivian announced a layoff of 6% of its workforce as part of a cost-cutting effort aimed at offsetting falling cash reserves. Irvine, CA-based Rivian struggled last year to ramp up production of its R1 trucks and EDV delivery vans for Amazon, its top shareholder, losing nearly 90% of the stock value it had garnered in a 2021 IPO.
Rivian’s layoffs involved 840 positions, primarily in California; the company said it did not make any cuts at the EV truck maker’s assembly plant in Normal, IL, Reuters reported.
Dermody, based in Reno, bought the 16-acre site of the former Berkeley Farms milk processing plant, which is in proximity to the San Mateo-Hayward Bridge, for $49M in 2020 for development as a warehouse and distribution facility.
In January, Dermody purchased a four-building office campus in Milpitas from Amazon and announced it will convert the 29-acre Bay Area site into something that once was part of Amazon’s original plans for the property: a 490K SF warehouse.
The e-commerce giant bought the vacant 395K SF Metro Corporate Center for $123M in October 2021 after the land was entitled by Milpitas for industrial use.
New industrial projects continue to rise in Haywood near the bridge. Last week, San Francisco-based Redco partnered with New York Life to purchase a 4.5-acre site in Haywood where the venture is planning to build a 100K SF warehouse.
The partners paid $9.25M for the site at 25375 Clawiter Road from Fremont Bank, which currently is operating a two-building ops center on the property with plans to remain a tenant until Q1 2024. Redco and New York Life are in the process of securing entitlements for the proposed industrial campus.
Houston-based Hines and MetLife are partnering on a 620K SF industrial project at 25800 Clawiter; Prologis is building a 160K SF warehouse at 24493 Clawiter. Both projects are scheduled to be delivered before the end of the year.