March 13, 2013, San Francisco, CA – NAI Northern California is proud to announce the addition of Jeff Gates as Senior Associate with focus on Net Leased investments, nationwide. Aiding to the expansion across Northern California, Mr. Gates is among a growing number of new team members NAI has added within the recent months. Mr. Gates joins NAI with numerous significant transactions exceeding $22M in sales and over 300,000 SF in leases.
NAI Northern California has assisted Lennox Industries Inc. in leasing a total of 65,790 SF of warehouse space in 5 Northern California cities over the past 4 months. Cities including Milpitas, San Leandro, Fresno, Concord & Stockton. Total transaction value was over $2.2M in lease considerations.
Lennox Industries, Inc. produces a wide range of innovative, energy-efficient and cost-effective HVAC systems designed to reduce the operational costs, energy consumption and environmental impact of commercial buildings. An industry leader in protecting indoor air quality, occupant health and employee and customer comfort. Based in the Dallas, Texas, area, Lennox has manufacturing and distribution facilities across North America.
Andrew Stoddard, Vice President of NAI Northern California, in conjunction with Chris Schupp from NAI Robert Lynn of Dallas, TX represented Lennox Industries in each of the transactions.
August 14, 2012, San Jose, CA – Douglas Sharpe, Senior Vice President and Managing Director of NAI Northern California, San Jose Office, has assisted the County of Santa Clara’s Department of Child Support Services in the acquisition of their newest home at 880 Ridder Park Drive in San Jose. The 83,841 square foot, 10 year lease, with Hines Interests L.P. Property Management Group was officially approved by the County Board of Supervisors on August 7, 2012. The approval came just in time for the full scope of tenant improvements to be made to the property for the scheduled November 1st, 2012 move in. The Department of Child Services is currently located in a 152,000 square foot building at 2851 Junction Drive in San Jose, CA.
Douglas Sharpe, MCR, LEED AP, joined NAI Northern California in March of 2012 as the Senior Vice President and Managing Director of the newly established San Jose office. His experience with major projects for public organizations, private high net worth individuals, government, and Fortune 500 Companies shines through with his leadership and was clearly demonstrated with this recent industry high transaction.
“Since joining NAI Northern California in March 2012, Doug Sharpe’s positive contributions to both his clients and NAI were immediately apparent. Transactions of this size and complexity demand a high degree of integrity, experience, and leadership”, James Kilpatrick, President.
NAI Northern California is full service commercial real estate services firm in the San Francisco Bay Area and part of NAI Global, the largest managed network of Commercial Real Estate Brokerage Service firms in the World. Recognized as one of the Top 25 Commercial Real Estate Firms by the East Bay and San Francisco Business Times, NAI Northern California provides comprehensive brokerage, leasing, debt, advisory, and property management services for corporate end users, property owners, developers, investors, and financial institutions.
Office leasing in the East Bay has yet to pick up speed, with vacancy remaining flat in most areas or at best inching up during the second quarter.
The largest office deal during the second quarter involved John Muir Health taking 144,000 square feet at 1450 Treat Blvd. in Walnut Creek. The move, however, had little impact on vacancy since the tenant is moving from space within the same market.
Leasing activity in the inner East Bay was relatively quiet with the only major deal being the University of California, Berkeley, taking about 93,000 square feet in Berkeley Crossing, a 120,000-square-foot building at 1608 4th St. in downtown Berkeley, owned by Strada Investment Group, primarily to house administrative operations.
“To date, the East Bay has not benefited from a significant spillover effect from San Francisco,” said Tom Maloney, managing director of Jones Lang LaSalle in the East Bay. The San Francisco office market has been brisk, due largely to a robust technology sector that gobbles up space at a premium.
Vacancy in the Interstate 80 and 880 corridor dropped slightly to 18.5 percent during the second quarter from 18.9 percent during the first quarter, according to CBRE. In the Interstate 680 corridor, vacancy was 20 percent and in the Tri-Valley, it reached 18.4 percent.
Bishop Ranch in San Ramon experienced a strong flow of leases during the second quarter with several deals, including KB Home taking 17,000 square feet, Kraft taking 25,000 square feet, and a division of Nestlé taking 13,000 square feet.
As with most deals in the East Bay in recent months, many of the last quarter’s deals involved relocations from inside the market, but that could change soon as leasing rates rise in other parts of the region.
“As San Francisco rents reach more than $50 a square foot — prices not seen since prior to the recession — and technology tenants continue to expand their space requirements, we expect that traditional, non-tech users will be priced out of the San Francisco market,” Maloney said.
Leasing rates for Class A space in Oakland range from about $28 to $35 per square foot — a bargain compared with San Francisco, according to Cornish & Carey Commercial Newmark Knight Frank.
Most of the prospective tenants shopping for space in the Interstate 680 corridor of late had requirements ranging from 3,000 to 25,000 square feet, said Andy Schmitt, a broker with CBRE in Walnut Creek.
“There are currently fewer large 50,000-square-foot active users in the market when compared to fourth quarter 2011 through second quarter 2012, but we continue to see large user interest in the remaining big blocks of space in the I-680 corridor.”
In Oakland, Clorox put 150,000 square feet of office space in its companyheadquarters on the market for lease after moving hundreds of workers to Pleasanton.
That has pushed up vacancy in the inner East Bay, said Bill Nork, a broker with Cornish & Carey.
Wareham Development recently unveiled its new, vacant 99,000-square-foot EmeryStation Greenway building in Emeryville.
With rents in the Peninsula and San Francisco soaring, Nork said, “we’re hoping that trickles down our way.”
Blanca Torres – San Francisco Business Times
NAI Kilpatrick is proud to announce and welcome Fredrick Limpert as Senior Vice President – Investment Sales to its San Francisco office and Brent Johnson as Vice President – Investment and Land Sales to its Oakland office. Mr. Limpert was formerly Senior Vice President at Grubb & Ellis and Mr. Johnson was formerly a Vice President at Grubb & Ellis.
Mr. Limpert brings over 25 years of experience as an investment specialist covering San Francisco and North Bay Counties. Mr. Limpert has completed over $200 million in North Bay apartment sales, triple net investment properties as 1031 exchange options and leased office investment properties for diversification.
Mr. Johnson specializes in landlord representation, tenant representation and investment sales in both Alameda and San Joaquin County and has been awarded as a top producer in the industry.
Both will be valued assets to the team.
“As we gain momentum in the bay area, there has been a surge of interest from top brokers. They see opportunity. In the case of Grubb & Ellis brokers, we’ve admired what they have done for some time, and we are thrilled to bring a number of them to our team” – James Kilpatrick, President.
NAI Kilpatrick is proud to announce and welcome Paul Adelman to the Office team as a Senior Associate in the firms Oakland Office. Paul specializes in Investment sales of commercial properties in Alameda & Contra Costa counties. Knowledgeable in all aspects of Commercial Real Estate, Paul is able to leverage his previous experience related to acquisitions and dispositions. Welcome to the team Paul!
In our San Francisco Office, Matt Brasler, Senior Vice President, recently completed a 16,206 square foot sublease at 201 Mission Street on behalf of a growing social media analytics company, Kontagent, Inc. At $17 psf, this sublease is the lowest rent per square foot achieved in the marketplace this year. Matt also recently listed 394 Pacific Avenue for lease, a brick and timber construction, beautifully restored historic building in a prime Jackson Square location.
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