Local RK Logistics pre-leased over 200,000 square feet of warehouse space in the Fremont Elm Business Center. The move was the second-largest lease in Silicon Valley in the second quarter.
RK Logistics is occupying 209,000 square feet of warehouse space at 47020 Garten Road, Fremont, according to a Colliers Market Report. The center is owned by Link Logistics and is expected to be completed later this year. The development is located on Kato Road, which has become an industrial hub with companies like Tesla, Boston Scientific and Delta Electronics. fremont At present, it has more than 50 million square feet of flexible industrial space, supporting the largest concentration of advanced manufacturing enterprises in the country.
Financial terms of the lease were not disclosed.
RK Logistics provides warehouse and supply chain management services.It recently opened more than 1 million square feet of industrial space in the U.S. Hayward. The property has 12 facilities and shares them with Tesla. It also signed a lease for 240,000 square feet on Winton Avenue in Oakland.
RK Logistics was just beaten by Tesla for the largest leasing contract of the quarter. The electric car manufacturing giant occupies 210,000 square feet of industrial space on Fremont Avenue in the same city.
Silicon Valley’s industrial/warehousing market is a bright spot for the region, according to the Colliers report. Gross absorption, a measure of total non-renewing leases and user sales, increased 81% from the previous quarter, totaling 945,000 square feet. The average asking rent was $1.45 per square foot, up 6.6% this quarter and 9% year over year. Despite the current strength of the market, developing entry barriers may harm the future development of the market.
“Extended rights periods, high land and construction costs, and supply chain issues critical to infrastructure development could delay construction and limit future supply,” the report said.