Users Snap Up 1.2M SF of Diminishing Industrial Space in Silicon Valley
- Apr 30, 2008
Demand for industrial product in Northern California’s Silicon Valley remains strong, as evidenced by real estate services firm Colliers International’s closing of 1.2 million square feet in new and expanded leases over the last two months. As per a Colliers report, Silicon Valley’s industrial market closed the year in 2007 with an overall availability rate of just under 7.7 percent. And during the first quarter, the warehouse and manufacturing properties kept the numbers down with average vacancy rates of 4.7 percent and 5.6 percent, respectively, according to a report by real estate services firm NAI BT commercial. The deals Colliers just completed involved at least 100,000 square feet of space each.In Santa Clara, Citrix Systems secured nearly 141,000 square feet at 4980 Great America Parkway, adding to its 141,000 square feet of space at neighboring 4988 Great America Parkway that it currently sublets from Terayon Communication. Data Domain expanded its occupancy at 2421 Mission College Blvd. from 100,100 square feet to nearly 200,400 square feet, and XenoPort Inc. grabbed approximately 58,800 square feet at 3400 Central Expressway while renewing its lease on about 103,000 square feet at 3410 Central Expressway. Sobrato Development owns all of the aforementioned properties.In Fremont, Supermicro Computer signed a 246,500 square-foot expansion at Pinole Properties’ 48350 Fremont Blvd. in Bayside Business Park., and ASUS Computer International signed a long-term agreement for 152,700 square feet at 800 Corporate Way. Additionally, Philips Electronics North America Corp. committed to 107,500 square feet at Sobrato’s 3860 North First St. property in San Jose. And in what is being touted as perhaps the largest industrial lease deal so far this year, FedEx Ground entered into a 10-year agreement for nearly 321,000 square feet at 8333 Central Ave. in Newark. Owned by LBA Realty, the three-building property is Ross Stores’ former headquarters, and includes a six-acre parcel of neighboring vacant land.