Fremont’s already tight industrial space market just got a little tighter.
On Tuesday, CBRE announced that Suzhou HYC Electronic Technology Co. Ltd. has leased the last unoccupied building in the newly completed 10-structure Pacific Commons South business park. The Chinese automotive equipment manufacturer will move into the 35,000 square-foot, two-story Building 5, CBRE said in a press release.
“We’re delighted to have the project 100% occupied with a diverse and terrific tenant base,” Timur Tecimer, managing partner and CEO of Pacific Commons South co-owner Overton Moore Properties, said in the news release.
It wasn’t clear how long a lease HYC signed or what it’s paying.
Other tenants at the business park include Amazon.com Inc., which operates a distribution center there; Bloom Energy Corp., and medical device company Cepheid Inc.
Overton Moore in a joint venture with Invesco Real Estate purchased the site in 2017 for $123 million, according to county records. The joint venture developed the property, which is located at 5210 Bunche Dr., just off Interstate 880 near Auto Mall Parkway, in three phases, beginning the following year. Completed last year at a development cost of $300 million, the industrial park offers a total of 1.7 million square feet of space.
CBRE brokers Rob Shannon, Chip Sutherland and Bob Ferraro represented the joint venture from the land purchase through leasing the buildings to finding debt financing for the property.
Because of its proximity to nature trails, stores, restaurants and I-800, Pacific Commons South “provides the amenities that tenants and their employees covet, making it a game changer in the industrial sector,” Shannon said in the news release.
Fremont and neighboring city Newark combined have 37.2 million square feet of industrial space, far more than any other submarket in Silicon Valley, according to CBRE. Despite having such large amounts of industrial space, the Fremont-Newark area had a vacancy rate of just 2.5% in the second quarter, according to CBRE.
“Ultimately, we see the low vacancy and strong rent growth naturally moving more commodity industrial uses to other parts of the East Bay and Valley,” Donovan Lazaro, Fremont’s economic affairs director, said at the Business Journal’s Future of Fremont event in June. “While it’s not without out its challenges, we are grateful to be in such a strong position in this sector.”