NorCal Warehouse, Data Center Hit 100% Leasing

SAN LEANDRO, CA-Two buildings totaling 114,000 square feet in two separate Northern California submarkets have hit 100% leasing. The two include a 64,000-square-foot warehouse in San Leandro and a new 50,000-square-foot data center in Santa Clara that was developed by Denver-based CoreSite.

In the San Leandro deal, All American Containers, one of the nation’s largest suppliers of plastic, glass and metal containers, has relocated to from a smaller facility in Hayward to lease a 33,777-square-foot portion of a 64,000-square-foot warehouse/distribution space at 1525 Alvarado St. The new facility will serve as Miami-based All American Containers’ regional warehouse and distribution facility for Northern California, according to Greig Lagomarsino, senior vice president of Colliers International’s Oakland office. Lagomarsino represented the owner, San Leandro Industrial Properties Inc. in the transaction along with Dan Bergen, vice president of Colliers International in Pleasanton.  Richard Sutherland of the Sutherland Co. represented the tenant. Terms of the deal were not disclosed; average asking net rental rates for warehouse and distribution space in the San Leandro market were about 46 cents per square foot per month in the first quarter, according to market reports.

The 50,000 square feet that was leased by CoreSite is phase one of the Denver-based company's Santa Clara data center campus at 2901 Coronado Dr. It has been fully-leased as a single-customer, private data center to one of the world’s largest technology companies, headquartered in the Bay Area, although CoreSite did not disclose the tenant. CoreSite, which recently launched a $230 million IPO, did not disclose the financial terms of the lease. According to its IPO filing, as of Dec. 31, its operating facilities were approximately 80% leased at an annualized rent of $65.08 per net rentable square foot.

The Santa Clara deployment is the customer’s second with CoreSite and is being built-out in four separate data center rooms. CoreSite has an additional 12.6 acres at the Santa Clara development site and a site plan for 446,250 square feet of data center space.