CBRE to Market New 636,000 SF Industrial Project in Silicon Valley

CBRE announced it will market and lease Edenvale Industrial Park, which is being developed by global real estate investment manager, Hines. Construction began on Tuesday for the three building, 635,833 sq. ft. Class A industrial park in San Jose, Calif. The 45-acre development is expected to deliver in June 2025 and is currently the largest industrial project under construction in Silicon Valley.

CBRE’s Chip Sutherland and Brian Matteoni will market and lease the project on behalf of the landlord, Hines.

“Leasing activity and demand for best-in-class industrial space continues to be strong in Silicon Valley due to the explosive organic growth of data server, artificial intelligence, cloud computing and smart automobile solutions. Edenvale Industrial Park, one of the few new ground-up industrial developments in Santa Clara County, will provide occupiers much needed inventory in one of the lowest industrial vacancy markets in the western U.S.,” said Mr. Matteoni, executive vice president at CBRE.

Located just off Highway 101 at 550-650 Piercy Road, each of the three buildings will have market-ready offices, 36 ft. clear heights, dock/grade loading, LED warehouse lighting and minimum 4,000 amps of power. Hines will also pursue Leadership in Energy and Environmental Design (LEED™) certification by U.S. Green Building Council.

Situated in the Edenvale neighborhood in South San Jose, the area is known for its concentration of advanced manufacturing, medical and nano technology companies.

“Edenvale Industrial Park will meet the demand from advanced manufacturing and industrial users for best-in-class quality Class-A industrial space,” said Sam Cheikh, managing director at Hines. “With a campus-like setting and flexibility to accommodate a range of users, this modern product will aim to capture the growth of tenants in the market.”

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. There was 1.2 million sq. ft. of supply under construction in Q1 2024, just 1% of the total market supply. Less than half a million sq. ft. delivered in 2023, according to CBRE Research.