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.
U.S. apartment rents went up 3.7% from March 2014 to March 2015, and for this time period San Francisco rents went up 14%…unless you are an apartment house owner, Ouch!
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- 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)
North I-680 Office Market Report Q4-14
Tri-Valley Office Market Report Q1-15
Tri-Valley Office Market Statistics Q4-14
Oakland Office Market Report Q4-14
San Francisco Office Market Report Q1-15
San Francisco 2014 Year-End & Forecast Report
San Francisco Peninsula Office Market Report Q1-15
Silicon Valley Research and Forecast Report Q1-15
Tri-Valley Industrial Market Report Q4-14
Tri-Valley Industrial Market Statistics Q4-14
10 Trends in Office Design
More Than 50,000 Units in the Housing Pipeline in SF
California’s new Title 24 makes smart lighting standard
2014 California Title 24 changes
The Emerged Law Practice: Progressive Traits of the Modern Law Office