Prologis Grabs Fremont Industrial Space for $59 Million

Prologis grabbed its latest industrial site in Fremont for $59 million.

An affiliate of the San Francisco-based firm took over a 177,000-square-foot commercial and industrial building at 5555 Auto Mall Parkway, the East Bay Times reported. Seller LBA Realty offloaded the property for 78.2 percent higher than its assessed value in January 2024 and nearly double the $28.5 million it paid for the building in 2016.

The building was formerly occupied by tech company Synnex and furniture warehouse store Lifestyle Solutions. It isn’t clear how long the building sat empty before the purchase.

Prologis, the world’s largest owner, operator and developer of industrial real estate, has continued to grow its footprint in the Bay Area — and Fremont specifically — in recent years.

In 2023, the company picked up another industrial property in Fremont at 48350 Fremont Boulevard, about 4 miles south of the Auto Mall Parkway site. Blackstone sold that 246,000-square-foot property for $86.6 million.

Last fall, Prologis bought a four-building office and research park in Fremont at 46859, 46871, 46889 and 46897 Bayside Parkway. Siemens Industry Software sold the property for $71.3 million.

So far this year, Prologis has been expanding its presence in the South Bay as well as San Francisco itself.

In April, the real estate investment trust gained final approval from San Jose city officials to develop a warehouse and industrial hub at 2256 Junction Avenue. The 276,000-square-foot building could house up to 250 employees once completed, The Mercury News reported.

Earlier this month, Prologis sought approval from the San Francisco Planning Commission for The Gateway, its planned redevelopment project that would turn a 17-acre site in Bayview that it owns into 2 million square feet of production, distribution and repair space complete with loading, parking and retail capabilities. It would be the largest industrial redevelopment project in the city in more than a decade. The commission’s next hearing on the project is June 26.

At the same time, Prologis is hoping to turn the area surrounding the Caltrain station in Mission Bay into the city’s latest transit-oriented residential and retail hub. The proposed 7-million-square-foot development on the railyards would add between 1,500 and 4,000 units of housing to the neighborhood.

— Chris Malone Méndez