CBRE Arranges Sale of Highly Sought-After Industrial Property in San Leandro, Calif.

CBRE announced the sale of a small-bay industrial property in San Leandro, Calif. to Terreno Realty for $34.6 million.

Michael Barry, Chris van Keulen and Bob Ferraro of CBRE represented both the buyer, Terreno Realty, an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, and the seller, Reynolds & Brown, a full-service commercial real estate and property management firm.

Strategically located along the I-880 freeway and minutes away from the Oakland Airport and Port of Oakland, the 105,893 sq. ft industrial property was originally built and owned by Reynolds & Brown since 1971.

“We’re very pleased with the arrangement and the ability to secure competitive offers for a property that rarely sees any vacancies. The property has been professionally and meticulously maintained over the years, as evidenced by the sellers’ longstanding ownership,” said Chris van Keulen, Senior Vice President of CBRE.

The San Leandro property has five buildings located at the addresses below, which include 12 dock high loading docks, eight grade-level loading positions and parking for 119 cars:

• Building 22: 2993-2997 Teagarden Street
• Building 23: 2971-2975 Teagarden Street
• Building 24: 2953-2959 Teagarden Street
• Buildings 43 and 44: 3041-3057 Teagarden Street

“Industrial properties of this size with dock loading and logistical functionality, in addition to its location and visibility along high traffic areas, are highly desired in the East Bay amid growing demand for turnkey industrial space and construction costs,” said Michael Barry, Executive Vice President of CBRE.

Across the U.S., large companies are leasing more warehouse and distribution space to hold more inventory as a check against rising supply chain costs, according to CBRE. National industrial leasing activity year-to-date through April 2022 is up by 7 percent from the same period in 2021, led by third-party logistics (3PL) providers. The Oakland industrial market saw rents increase 19 percent year-over-year, with San Leandro industrial space recording a 3.1 percent vacancy at the end of Q1 2022.

“Bob, Mike, and Chris are some of the most elite brokers nationwide that we had the chance to work with,” said Cody Saunders, Senior Vice President of Terreno Realty. “Teagarden is a unique set of functional small-bay buildings that are increasingly rare to find in the Bay Area and we are extremely excited to add them to our growing portfolio.”