Industrial space has long been in high demand near the Port of Oakland, one of the nation's largest freshwater transportation hubs, but the arrival of the pandemic kicked off a wave of high-profile leases and developments that has pushed competition even higher.
Chicago logistics developer CenterPoint Properties was able to both capitalize on the rising demand in the San Francisco East Bay area and circumvent some of the land availability challenges that restrict new construction in the area. The firm signed a ground lease with the Port of Oakland in order to develop CenterPoint Landing in Oakland, California.
The industrial developer and Port of Oakland officials agreed to a long-term lease with operator PCC Logistics for the 460,830-square-foot complex once construction was completed, a deal significant enough to earn it a 2023 CoStar Impact Award, as judged by real estate professionals familiar with the market.
The $52 million development at 1300 Maritime St. is the largest logistics facility within the Port of Oakland and is the first of what will eventually be built out to encompass more than 123 acres along the Oakland waterfront.
“The new warehouse operation, being so close to marine and rail terminals, will be efficient for moving cargo through Oakland,” Port of Oakland Maritime Director Bryan Brandes said upon the project's completion. “This is a vision the Port has had for more than a decade and now it’s coming to fruition at just the right time.”
About the project: The Board of Port Commissioners approved the development agreement with CenterPoint in November 2017 with building permits approved a couple years later and construction on the project wrapping up in 2021. The Maritime Street site includes a significant amount of parking and outdoor storage, which has become critical for logistics companies and distributors given the sharp increase in import activity at national ports. The building also has 148 docks, which are expected to help make it one of the most efficient on-port facilities in the country.
What the judges said: "The Port of Oakland is critical to the Bay Area economy and this lease represents an expansion of the port's capabilities and provides local job opportunities," CoStar Impact Award Judge Rachel Kram, a partner with CP Partners, said of what was one of "the largest deals" for the region last year.
They made it happen: CenterPoint Properties' John Lass, Blake Kelly and Michael Murphy worked on the development agreement and construction for the Oakland project along with Bryan Brandes and Mike Heeneman from the Port of Oakland. Patrick Metzger, Jason Ovadia and Greg Matter of JLL represented the landlord in the long-term lease with PCC Logistics, which was represented by KBC Advisors' Sam Higgins in the deal.
