Prologis Eyes 1.6 MSF Industrial Park in San Francisco
Plans call for two multi-story buildings less than 5 miles from the city’s downtown.
Prologis has received unanimous approval from the San Francisco Board of Supervisors to develop a 1.6 million-square-foot, multi-story industrial park. However, further permissions are required before construction can begin in earnest, the San Francisco Examiner reported.
The 17.1-acre development site currently contains four single-story warehouses totaling 448,000 square feet. Prologis plans to raze these facilities and replace them with two three-story buildings.
This development would also include 543,500 square feet of loading and parking space, with most being projected to take shape at the roof level, where a solar array is likewise envisioned. Additional improvements to the public infrastructure across surrounding streets, as well as programs designed to assist small businesses, are also planned.
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The four properties slated for demolition debuted in 1940. The buildings are located at 2000 McKinnon Ave., less than 5 miles south of downtown San Francisco.
Notably, Prologis faces local pushback on this project, while other metros, such as San Diego and Portland, Ore., have already rejected similar proposals by the company, according to the San Francisco Bay View.
Prologis eases build-to-suit investment
Prologis deployed $446 million in new industrial developments during the third quarter, with more than half—63.9 percent—of capital going toward build-to-suit projects, down from 78 percent in March, according to the company’s latest quarterly report.
Another such project includes Prologis’ 442,000-square-foot property in Forsyth, Ga., built for Fiat Chrysler Automobiles. Broadstone Net Lease partnered with Prologis for this development in April.
Bay Area’s lackluster industrial pipeline pushes fundamentals up
The Bay Area had just 3.2 million square feet of industrial space underway as of September, accounting for 1.1 percent of total stock, 60 basis points under the national average, according to the latest Yardi Matrix report.
The incentives to develop are high as average rents clocked in at $13.99 in September, above the U.S. average of $8.72, the report shows. Each premium went up 6.1 percent year-over-year. Meanwhile, the market’s vacancy stood at 8.1 percent, 140 basis points below the national figure.
One notable project underway across the Bay Area is Bridge Industrial’s 714,491-square-foot, four-building development in San Jose, Calif. Completion is expected in March 2026.
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