Duke Realty readies to build warehouse in South San Jose

Duke Realty has received a go-ahead to break ground on a 282,000-square-foot warehouse and office building in South San Jose.

The Indiana-based real estate investment trust, recently purchased by Prologis, received a building permit for a logistics center, warehouse and office building at 5977-6001 Silver Creek Valley Road, the San Jose Mercury News reported.

An affiliate of Duke bought the 15.1-acre property east of Highway 101 and Blossom Hill Road for $40.2 million in October 2021.

The office portion of the building is expected to total 10,000 square feet. The warehouse will include up to 40 loading dock doors and 54 truck trailer stalls. An outdoor area will be set aside for use by nearly 200 workers, according to planning documents.

It’s the type of development that has frequently drawn Amazon as a tenant, according to the Mercury News. Amazon also is one of Duke’s major tenants.

In early October, San Francisco-based Prologis completed a $23 billion deal to buy Duke Realty, a merger that created one of the biggest powerhouses in the real estate business. The initial proposal was $24 billion in an all-stock deal.

It wasn’t clear how the purchase of Duke Realty by Prologis might affect the San Jose warehouse-office project. Duke Realty’s CEO James Connor now sits on the Prologis board of directors.

“We’re gaining high-quality properties and more than 500 new customers in key markets,” Hamid Moghadam, CEO of Prologis, said in a prepared release at the time of the Duke Realty acquisition.

— Dana Bartholomew

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