Ares Inks Full-Building Lease in the Bay Area
A tenant affiliated with Blackstone will occupy the property.
An Ares Real Estate fund has signed a full-building lease at San Jose Logistics Center, a 212,683-square-foot industrial property in San Jose, Calif.
Therma, a design-build company focused on mechanical systems and a subsidiary of Blackstone-backed Legence, is the tenant.
CBRE’s Vice Chairman Chip Sutherland and Executive Vice President Brian Matteoni represented the owner.
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San Jose Logistics Center is at 650 N. King Road on a 9-acre lot, close to Interstate 680 and State Highway 101, allowing easy access through Silicon Valley as well as to San Francisco. The city’s downtown area and international airport are both 4 miles away.
The 2024-completed facility is LEED Gold certified and features 36-foot clear heights, two grade-level doors, 27 dock-high doors, 113 vehicle parking spots and 46 trailer parking spots. Additionally, it includes 10,000 square feet of office and is zoned for light industrial use.
The Bay Area’s industrial sector maintains strength
The Bay Area’s industrial vacancy rate stood at 8.1 percent as of September, below the 9.5 percent national average, according to a recent industrial report from CommercialCafe. Across Western markets, the Inland Empire’s rate stood at 7.7 percent, Phoenix’s at 8.2 percent. Los Angeles’ at 8.3 percent.
In September, the Bay Area had 3.6 million square feet of industrial space under construction, the same source shows. Among some of the largest projects slated to be added to the pipeline is Related Cos.’ master-planned development in Santa Clara, Calif. The developer recently received city approval to replace 4 million square feet of office space with light industrial and distribution use. Plans call for 9.1 million square feet on 240 acres.
Sterling Logistics Properties is also working on a conversion. The company picked up a 127,380-square-foot former Walmart store in Fremont, Calif., this August, with plans to redevelop the property into an advanced manufacturing or distribution facility.
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