Home Depot leases 127K warehouse in North San Jose
Facility will open next year to receive and inspect appliances for delivery
Home Depot has leased a 126,700-square-foot distribution warehouse in North San Jose.
The Atlanta-based home improvement retailer will occupy the industrial building at 1953 Concourse Drive, the San Jose Mercury News reported. The owner is Overton Moore Properties, based in Torrance.
In 2020, Overton Moore paid $13.5 million for the property, now known as Concourse Logistics Center.
The 7-acre site had a 110,000-square-foot office and research building, located in the city’s International Business Park. Overton then bulldozed the offices and replaced them with the warehouse.
The nation’s largest home improvement chain pre-leased the building last November. Terms of the lease were not disclosed.
Home Depot plans to use the warehouse as a delivery center, to open next year, a company spokesperson told The Real Deal. Employees will receive and inspect appliances before loading them for shipment, adding a link to the company’s supply chain network.
With its new lease, the firm can move into a modern industrial building with an excellent location, with direct access to the 680 and 880 Freeways as well as the new Milpitas BART station, according to Newmark, which marketed the building.
The site also is two miles south of a Home Depot store in neighboring Milpitas. The company has five stores in San Jose, although the closest one to the project is six miles away, according to its online store directory.
It’s three miles east of another 103,000-square-foot Home Depot distribution warehouse.
Unlike Amazon.com, which takes a “lease some, buy some” approach to real estate, Home Depot prefers to rent than own its industrial space: It leases 95 percent of its distribution centers, financial filings show.
In Los Angeles and Southern California’s Inland Empire, Home Depot signed for more than 4.5 million square feet of industrial leases last year, according to public records reviewed by The Real Deal.
— Dana Bartholomew
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