Valley Industrial Projects Can’t be Completed Soon Enough

Johnson & Johnson Vision is a 180,086-square-foot flex building situated on 13.43 acres.

MILPITAS, CA—Industrial and warehouse demand still remains high, outpacing the constrained supply. Large-scale investors and users were forced to place their money in the southern and eastern regions of the Valley during the last quarter, with limited opportunities elsewhere. Industrial and warehouse investors continue to gobble up the few remaining properties with plans to redevelop into different product types that can yield higher returns, according to Kidder Mathews’ second quarter industrial report.

Construction stayed constant during the second quarter with 1,175,608 square feet of industrial development underway. Warehouse construction remains at 84,648 square feet, after being entirely dormant last quarter, says the report. These projects can’t be completed soon enough as tenant demand for space in Silicon Valley continues to rise.