Two Leases Reflect Staying Power of Online Retail

The property is being redeveloped to accommodate the industrial tenant’s needs.

HAYWARD, CA—With e-commerce retailers such as Amazon.com changing shipping expectations for consumers around the world, this translates to a strong demand for infill distribution space. As an indication of that activity, DCT Industrial Trust Inc. has executed two full-building e-commerce leases totaling 497,000 square feet.

In Hayward, DCT executed a 297,000-square-foot lease for a current redevelopment project at 22290 Hathaway St. On 12 acres of land, the property at the time of purchase was 394,000 square feet and is being redeveloped to accommodate the industrial tenant’s needs. DCT started redevelopment in February 2016 and completion is slated for third quarter 2016. DCT’s projected total investment in the asset is $32 million, according to DCT’s 2015 year-end operating results. The tenant is expected to take full occupancy of the building in October upon the completion of the improvements. DCT has owned the property for one year.