Out in Tracy…

Out in Tracy, California, FedEx just bought a 117-acre industrial parcel from Prologis to build a 467,000 square foot Northwest distribution facility, and Redline purchased 61 acres to put up a new one-million-square-foot medical supply distribution center.

Warehouse and office buildings for the same price

Right now you can purchase Class A office buildings at the same per-square foot prices as you can warehouse/flex buildings. On a NNN basis the rental rates may even be the same, but the difference is in the cost of tenant turnover. Warehouse vacancies are single-digit and might cost the landlord a few bucks a foot for tenant improvements, whereas the Concord California office vacancy is currently 20%, a space might sit empty for 12-24 months, and the new tenant might require $20-30/rsf or more in tenant improvements.

Google’s new futuristic office campus

Google’s new futuristic office campus- where the floors, ceilings and walls attach or detach from permanent street frames, using small cranes and robots to transform workspaces within hours.

New ground –floor retail, markets and cultural spaces would allow the public inside the Google hive. The structures will be enveloped by glass canopies ‘as big as city blocks’, which would incorporate photovoltaics for alternative energy generation. The project is in North Bay shore, a 500-acre enclave on the edge of the San Francisco Bay. (Silicon Valley Business Journal, February 27, 2015)

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