267,000-SF Industrial Development Breaks Ground in Silicon Valley

Ground broke Tuesday on Milmont Industrial, a new 267,000-sq. ft. Class A advanced manufacturing and distribution facility in Fremont, Calif. led by global real estate firms Hines Interests LP (“Hines”) and Oaktree Capital Management, L.P. (“Oaktree”). CBRE is marketing the facility for lease.

“Milmont Industrial serves a need in the market for next-generation industrial facilities,” said Shawn Hardy, managing director at Hines. “Demand from advanced manufacturing for Class A industrial space continues to outpace existing market supply and we look forward to capitalizing on this increased demand.”

The property will be located at 49000 Milmont Drive in Fremont. Milmont Industrial will be redeveloped from three buildings into a single brand-new industrial building with high clear heights, heavy power, ample parking, and loading docks.

In December 2023, CBRE’s Debt and Structured Finance team in San Francisco arranged a construction loan for Milmont Industrial.

"In response to high demand for advanced manufacturing space in Fremont, as Mayor I am proud of our City's collaboration with Hines and CBRE on the groundbreaking at Milmont Industrial. Our shared efforts epitomize our forward-thinking approach in meeting business needs through commercial real estate cultivation and supporting our best-in-class manufacturing ecosystem. This investment strengthens our industrial landscape and underscores Fremont’s leadership in manufacturing. Together we're laying the foundation for a more prosperous future," said Fremont Mayor Lily Mei.

Situated in Fremont’s Warm Springs District, the area is known for its concentration of advanced manufacturing companies in the semiconductor, computer hardware, electric vehicles, clean technology, and life sciences industries.

“Demand for advanced manufacturing has grown substantially and Milmont Industrial offers top-of-the-line features that modern industrial tenants need in a supply-constrained market. Milmont Industrial’s proximity to other advanced manufacturing and large tech companies will enable the tenant to draw on Silicon Valley’s deep pool of talent and be well-positioned within the tech ecosystem,” said Chip Sutherland, vice chairman at CBRE.

Industrial leasing activity and tenant demand in Silicon Valley increased in Q1 2024. Leasing activity was up 23.2% from Q4 2023, according to CBRE Research. Meanwhile, tenant demand was 4.81 million sq. ft. at the end of Q1 2024, up from 3.72 million sq. ft. in Q4 2023.

Supply is tight for Class A industrial properties in Silicon Valley that are 50,000 sq. ft. and above, which benefit companies that utilize robotics, automation, automotive and high-tech manufacturing. The average industrial tenant requirement in Q1 2024 was 127,000 sq. ft., with tenants often needing ample power and high clear heights.