(This story was corrected Sept. 2 with the names of the sellers of the property, Clarion Partners and Ridgeline Property.)

Delivery startup Gopuff appears to be back in expansion mode just a few months after slashing its portfolio of warehouses across the country.

The Philadelphia-based company, which delivers a wide assortment of goods including food, drink and toiletries, has leased a distribution facility in Richmond, California. At 124,050 square feet, the building will be Gopuff's largest warehouse in the U.S., according to CoStar data, compared to the company's more than 115 other industrial facilities in the country that range between 6,500 and 10,000 square feet.

Colliers, which brokered the deal on behalf of landlords Clarion Partners and Ridgeline Property, confirmed the deal at 6065 Giant Highway. The lease for the East Bay warehouse was signed earlier this month, according to CoStar data, and will run through mid-December 2029.

It's an apparent reversal of retrenchment plans Gopuff made in May to curb spending and adapt to slowing sales growth.

Gopuff is among a cohort of companies that expanded quickly after the pandemic started in 2020. But excess spending, rising overhead costs and slowing sales earlier this year have hurt the company in the meantime. At its height in July 2021, Gopuff was valued at $15 billion thanks to a 70% jump in order volume compared to the prior year. Delivery demand has since waned.

After opening roughly half of its 600 planned warehouses around the world last year, the company said in May it would halt operations or permanently close more than 20 of those in the United States and lay off about 1,500 workers. It was the second time within a four-month period that the company implemented layoffs as part of an effort to streamline expenses.

Gopuff said it expects the reduction in jobs and warehouse holdings will result in savings of about $100 million each year over five years. The company, which also shelved its plans to launch an initial public offering this year, did not respond to CoStar News' multiple requests for comment.

If downsizing was evidence the company had grown too much too quickly, Gopuff's new Richmond lease may be evidence that its initial cuts were too deep.

The delivery startup's Richmond lease is the latest boost to the logistics and distribution market in the East Bay. Even though the region is the Bay Area's largest industrial market, new construction over the past several years hasn't been able to keep up with surging tenant demand. Average rents among some high-demand industrial properties have climbed by nearly 9% over the past year, according to CoStar data, a healthy jump compared to the annual 7% increase the region has averaged over the past decade.

Todd Severson, Greig Lagomarsino and Nick Ousman of Colliers represented landlords Clarion Partners and Ridgeline Property.