A publicly traded San Francisco-based real estate investment trust investor is making a play across the bay, with Oakland’s air and sea ports a key to the deal.
Terreno Realty recently paid $34.6 million for 104,000 square feet of industrial property in San Leandro. The price came to around $333 per square foot for the five-building development, which is about 10 minutes away from the Oakland International Airport and roughly 20 minutes from the Port of Oakland, the busiest seaport between Los Angeles and Seattle.
Terreno purchased the property from Reynolds & Brown, which built it in 1971 and had owned it ever since.
The five buildings are located at 2993-2997, 2971-2975, 2953-2959, and 3041-3057 Teagarden Street. The complex includes a number of 12 raised docks, eight grade-level loading positions, and parking for 119 cars. The property is 100 percent leased to 13 tenants, with all of the agreements set to expire by 2027.
The proximity to the ports and to the 1-880 freeway combined with “a unique set of functional small-bay buildings that are increasingly rare to find in the Bay Area” made the development a good fit for Terreno’s portfolio, said Cody Saunders, senior vice president of the company.
Across the United States, large companies are leasing more warehouse and distribution space to hold more inventory as a check against rising supply chain costs, according to recent data from CBRE, which represented the buyer and seller for this transaction.
National industrial leasing activity is up 7 percent through April compared with the same period in 2021, led by third-party logistics providers. The Oakland industrial market saw rents increase 19 percent year-over-year, with San Leandro industrial space recording a 3.1 percent vacancy, according to a Q1 report by CBRE.
Terreno Realty acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. They currently have acquired 255 buildings totaling over 15 million square feet of industrial property.
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