REAL ESTATE NEWS

Prologis is adding an industrial property in San Mateo County, California, to its portfolio for $314.5 million. This marks the largest deal by volume so far this year for an industrial asset in the Bay Area, according to a report from the San Francisco Business Times, which cited real estate records.

The price would imply that the almost one million square foot property cost Prologis roughly $330 per square foot. The 11-building asset represents a component of Crocker Industrial Park.

Before the deal, Prologis owned 13 buildings, or more than 500,000 square feet, inside Crocker. The entire park in Brisbane is 95 percent leased.

The seller of the 11-building portfolio was the California State Teachers Retirement Fund.

For industrial in the Bay Area, tech-related sectors are boosting demand, according to a report from CommercialCafe. However, with supply increasing, vacancies have spiked to 8.1 percent and rent growth has decelerated to two percent.

According to Prologis, it's the largest industrial landlord in the Bay Area, managing more than 30 million square feet across 285 properties and serves 600 customers there. It also has two million square feet in the pipeline in the region.

Logistics-focused Prologis reported its third-quarter financials recently, noting that its portfolio occupancy averaged 94.8 percent. Additionally, the San Francisco-based firm posted 62 million square feet of lease signings, marking a record total for the company. Also, CEO Hamid Moghadam predicts that warehouse rents will stabilize at much higher levels than current rates, as the market deals with volatility in global trade and supply chains.

Source: GlobeSt/ALM