CHERRY COMMERCE CENTER
PROJECT SUMMARY
DATE ACQUIRED
Dec. 2018
LOCATION
Newark, CA
SIZE
97,672 SF
TENANTS
4
YEAR BUILT
1997
MARKET
REGION
Located across the peninsula from San Francisco, the East Bay market is home to more than 2.7 million residents making it the most populated region in the bay area after growing 6.1% over the last 5 years. The market’s growth is illustrated by 12,785 construction permits pulled in 2017. Industrial product in the East Bay has seen increased demand over recent years driven off increased desire by corporations to consolidate their fragmented operations into corporate campuses and the peripheral users that follow. The market benefits from outstanding connectivity to the Bay Area’s workforce housing communities of Pleasanton and Livermore while providing convenient access to all the peninsula’s key commercial centers, including San Francisco and Silicon Valley. The East Bay has seen significant demand convergence pushing south as Oakland continues to gentrify and industrial product is converted to creative office, and north from Silicon Valley alongside a flight to affordability. The East Bay is directly in the path of growth generated by the land-locked peninsula and large investments are being made into transportation infrastructure which benefit the region’s access to the renowned commercial hubs in the area.
LOCAL AREA
Fremont has continued to expand rapidly as its population has grown by over 10% since 2010. Today, Fremont is the 4th largest city in the bay area with a total population of over 230,000. Fremont is home to several large corporate tenants including Tesla, Western Digital, Seagate, Lam Research, Solar City, and Thermo Fischer. These corporate anchors are looking to capitalize on a skilled labor force where 49% of the population has a bachelor’s degree or higher with an average household income of $114,000. Year-to-date, The city currently has over 6,000 residential units under construction by prominent national developers such as Lennar and KB Homes as the submarket matured alongside the expansion of the BART infrastructure which provides convenient connection to the entire Bay Area. Fremont has seen explosive demand growth pushing north from Silicon Valley, which has caused the submarket to transition into a key advanced manufacturing hub, making industrial distribution product increasingly scarce.