FedEx leases large distribution center in San Jose

FedEx has leased a large new industrial and warehouse complex in North San Jose.

The site, which has a new 179,600-square-foot building, is located at 1605 Industrial Avenue, a location with quick and easy access to the freeways and airports, Mercury News reported.

“FedEx Ground has entered into a lease agreement on a new distribution center located on Industrial Avenue that will be 180,000 square feet when it is operational in 2022,” FedEx spokesperson Dana Hardek told Mercury News.

According to Hardek, the new facility will employ both full-time and part-time workers and the company will also contract services from local providers, which will provide more job opportunities locally.

The site, which is located near the San Jose International Airport and off a freeway with connections to Oakland International Airport, was chosen “because of its ease of access to major highways” and “proximity to customers’ distribution centers.” Hardek also said the community’s strong local workforce for recruiting employees was a draw for FedEx.

The building, which is owned and was developed by LBA Realty, was formerly the site of a sales center for truck parts.

With online sales exploding in recent years — even more so with the Covid-19 pandemic keeping so many inside their homes — FedEx has been able to expand worldwide and in the Bay Area.

“We continue to experience a surge of package volume due to e-commerce growth and are optimizing the capacity of our network to meet growing demand for our services,” Hardek said.

In similar news, AGC Equity Partners agreed to buy a large campus in San Jose. The two-building complex, which is being leased by Yahoo, sold for $775 million — a record-breaking price for a single office property in the city.

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[MercuryNews] — Victoria Pruitt