Hines has purchased 16.4 acres of land for the development of Raceway Industrial, a logistics project in Carlsbad, Calif. This marks their first industrial land acquisition in the metro.
The company plans to develop a one-story, 249,000-square-foot warehouse on the site. Completion is scheduled for early 2022. The site is located between interstates 5 and 15, in the North County submarket.
Demand for industrial real estate exploded in 2020, primarily driven by e-commerce’s pandemic-induced boom. According to CommercialEdge data, the fourth quarter of 2020 had the highest sales volume of any quarter since CommercialEdge began collecting industrial data, with $11.9 billion in sales completed. The average price per square foot rose 18.2 percent year-over-year through January to $100.
Continued demand for industrial space is set to sustain rent growth and drive vacancy rates lower. In January, Ryan Cos. and DWS Group completed Vantage Point, a 533,950-square-foot logistics development in Poway, Calif., that is leased to Amazon. That same month, Hines sold an approximately 400,000-square-foot asset in Santa Ana, Calif. The facility traded for $113.5 million. The new deal comes almost half a year after Badiee Development completed the construction of a 50,150-square-foot adaptive flex industrial building in Carlsbad, with TFW acting as general contractor.