CBRE to Market New 636,000 SF Industrial Project in Silicon Valley
Construction begins on Class A advanced manufacturing development in San Jose
San Jose – June 25, 2024 – 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.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About Hines
Hines is a leading global real estate investment manager. We own and operate $93.2 billion of assets across property types and on behalf of a diverse group of institutional and private wealth clients. Every day, our 5,000 employees in 30 countries draw on our 65-year history to build the world forward by investing in, developing and managing some of the world’s best real estate. To learn more, visit www.hines.com and follow @Hines on social media.
