The latest industrial lease deal in San Jose points to the South Bay city’s position of strength in the market.
Therma, which provides heating and air conditioning services for tech buildings, has leased the entire San Jose Logistics Center building in San Jose, the Mercury News reported. The property at 650 North King Road spans 212,700 square feet and is owned by a fund controlled by Ares Real Estate.
CBRE’s Brian Matteoni and Chip Sutherland helped broker the deal.
The building was recently delivered, and the deal underscores a demand for newer buildings that are well-located and have ample power, Matteoni said.
Industrial leasing activity is on the rise in the South Bay, per CBRE. Vacancy was at 4.1 in the third quarter, down from 4.7 percent in the second quarter.
Data centers are among the clients San Jose-based Therma serves.
With the growing artificial intelligence sector in the Bay Area and beyond, data centers are becoming a valuable asset for all players involved in their construction.
Goodman Group, for example, is among those looking to jump on the data center craze.
The Sydney, Australia-based real estate firm bought a 46.8-acre site in north San Jose from LBA Realty for $200 million, the Silicon Valley Business Journal reported. The company plans to develop two data centers on the property totaling about 414,000 square feet with the output capacity of 97.3 megawatts of power.
Dubbed the Goodman Innovation Center San Jose, the planned complex, at 350 and 370 West Trimble Road, is slated for opening by 2028. It’s a part of Goodman’s “strategy to deliver infrastructure in major cities, adding value to sites with high barriers to entry and providing future growth opportunities,” Goodman North America CEO Anthony Rozic said.
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