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Amazon’s Self-Driving Startup Scores Major East Bay Lease To Prep for Ambitious Manufacturing Plans

Zoox Leases Hines-Developed Warehouse in Hayward, California
Zoox, an autonomous vehicle startup acquired by Amazon in 2020, has plans to launch a large-scale manufacturing operation in Hayward, California. (Zoox)
Zoox, an autonomous vehicle startup acquired by Amazon in 2020, has plans to launch a large-scale manufacturing operation in Hayward, California. (Zoox)
CoStar News
September 28, 2023 | 9:53 P.M.

An autonomous vehicle startup owned by Amazon is preparing to stomp on the gas for its ambitious manufacturing plans, leasing a large industrial property in the San Francisco East Bay to use as a launchpad for its self-driving growth.

Zoox, the Silicon Valley company acquired in 2020 by the e-commerce giant for $1.3 billion, signed a lease to take over the more than 219,300-square-foot warehouse at 25810 Clawiter Road across the bay in Hayward, California. The agreement with Hines, the Houston-based development firm behind the construction of the 620,000-square-foot Hayward Exchange industrial campus, provides the space necessary for Zoox to build out a manufacturing facility in order to scale the production of its self-driving vehicles.

The startup has filed permits for the Clawiter Road property, where it is expected to spend roughly $12 million to build out the site. A Zoox spokesperson declined to provide specifics, but said in a statement that it continues to establish "new facilities in various locations."

A construction timeline or estimated move-in date was not immediately clear. Hines declined requests for additional details.

News of the planned facility comes after Zoox earlier this year was granted a driverless testing permit, a critical step in its goal of commercializing its fleet of self-driving taxis. Amazon already leases about 275,000 square feet of space in the Hayward industrial part for its Amazon Web Services branch, which it preleased last year.

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While the pandemic-era days of blockbuster leasing activity and high-profile construction starts are now few and far between, the East Bay's central location and proximity to major thoroughfares has helped the region maintain its status as one of the country's priciest logistics markets, commanding more than a 40% rent premium compared to the national average, according to CoStar data.

Leasing activity has shrunk in recent years as deals have settled at or below about 200,000 square feet, with tenants collectively signing on for about 1.4 million square feet within the first half of the year, according to the data.

IN THIS ARTICLE


  • Properties
    • Bldg 3

      25810 Clawiter Rd, Hayward, CA

  • Companies