Top Transaction is $45 Million Industrial Lease in Vacaville, Speakers Say There is Room for Optimism
SAN FRANCISCO – August 20, 2020 – The Northern California Chapter of Society of Industrial and Office Realtors
(SIOR) released its second quarter top transactions including industrial leases/sales and office leases/sales. The transactions include the following:
Top Industrial Lease Large Market
Brooks Pedder, SIOR, Cushman & Wakefield
617,000 square feet | $45 million
4800 Midway Rd., Vacaville, Calif.
Lessee: Confidential
Lessor: LDK Ventures
Top Industrial Sale Large Market
Jason Ovadia, SIOR, JLL
172,455 square feet | $33.6 million
2589 Goodrick Ave., Richmond, Calif.
Buyer: Dermody Properties
Seller: New York Life
Top Office Lease Small Market
Melissa Molyneaux, SIOR, Colliers International
9,899 square feet | $1.38 million
6005 Plumas St., Reno
Lessee: Lemmons, Grundy & Eisenberg
Lessor: Mueller III LLC
Top Office Sale Small Market
Scott Shanks, SIOR, Dickson Commercial
65,377 square feet | $11.2 million
1340 Financial Blvd., Reno
Buyer: Undisclosed
In addition, the chapter recently had a mid-year update webinar with the following speakers:
Paul Single, Managing Director, Senior Portfolio Manager, City National Bank
Jim Ellis, Managing Principal/Co-Founder, Ellis Partners
Joe Finnigan, Managing Director West Region, Link Logistics Real Estate
Paul Stein, Managing Partner/Co-Founder of SKS Partners
Mark Duclos, SIOR Global President and Founder/President of Sentry Commercial
These industry leaders discussed how the national economy and commercial industry are faring and what is ahead for the remainder of 2020. Single said of the $3 trillion deficit, “eventually Congress has to deal with it but it is no time to be cheap with money; this is what caused the Great Depression”. He also said the inflation rate continues to be low and “the Fed is not even thinking of raising rates”.
The brokers said there is near-term erosion of all product types in varying degrees but are generally optimistic in long-term fundamentals. Retail retooling will allow for hybrid concepts and other uses, and industrial product is taking center stage with increased volume of online purchases due to stay at home orders.
Stein said people will definitely go back to office space but it will likely include fewer open space concepts. Others indicated that the work from home trend will leave a permanent residual effect but the adjustment will result in stronger future office demand.