Prologis, which leased half of a nearly 300,000-square-foot warehouse in Hayward last spring to Tesla, has now rented the other half to an automotive parts distributor.
National Auto Parts NorCal, currently based in Oakland, inked a lease for nearly 150,000 square feet at 22290 Hathaway Avenue, the San Francisco Business Times reported, citing unidentified sources.
Financial terms of the 10-year-lease with San Francisco-based real estate investment trust were not disclosed.
In April, Prologis leased 148,500 square feet of the building to electric vehicle maker Tesla for undisclosed terms.
Prologis acquired the building a block east of Interstate 880 in 2018 as part of its $8.5 billion acquisition of DCT Industrial Trust, which bought the property in 2015 for $16.6 million.
The building was being marketed for warehouse use, according to a brochure reviewed by the Business Times. National Auto Parts could not be reached for comment.
The car parts distributor is moving from its current location at 6201 Coliseum Way in Oakland, the Business Times reported.
National Auto was represented in the lease by brokers Tom Damaschino of KBC Advisors and Brian Collins of Collins Commercial Real Estate. Prologis was represented by Sam Higgins of KBC Advisors and Jeff Starkovich of Cushman & Wakefield.
There were some major industrial leases in the East Bay last spring, including Tesla’s lease of more than 200,000 square feet in Fremont and Rivian’s lease of 60,000 square feet nearby.
But the “red hot” market at the dawn of the pandemic has begun to cool, according to the Business Times.
Industrial vacancy of Hayward’s 25 million-square-foot industrial market was 6.9 percent in the first quarter, according to figures from JLL. That rate is likely to climb as the EV maker Rivian sheds 350,000 square feet of industrial space at 25500 Clawiter Road for sublease.
— Dana Bartholomew
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