Dermody Acquisition Thedistribution space at Hacienda Business Park includes expansion ofan additional 85,520 square feet.

PLEASANTON, CA—Market conditions in the East Bay continue tofavor landlords, specifically, demand is strong in spite ofincreasing rents and lack of availability. Numerous tenants arecurrently seeking more than 5 million square feet of industrialspace, but efforts to find space are stymied by the area's 4.2%vacancy rate, which means that little room exists for movementwithin the market. More than 3.2 million square feet of developmentare underway and of that, 2.2 million square feet will be deliveredthis year, according to a second quarter report by JLL. As the 13speculative projects in the pipeline are completed, the marketshould experience some relief.

That being said, one of the scarce available properties isavailable no more, with Dermody Properties acquiring a390,800-square-foot distribution space at Hacienda Business Park.The warehouse/distribution space is situated on a 22.38-acre parceland includes excess land for future building expansion, resultingin an additional 85,520 square feet. It features 28 to 30-footinterior clear height, 45 dock-high doors with the potential to addmore and four grade-level doors, making it an ideal property forlogistics-focused companies. The purchase exemplifies DermodyProperties' strategy to acquire or develop properties inland-constrained submarkets of key logistics markets.

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Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.