Prologis bought a portfolio in Brisbane’s Crocker Industrial Park last month for $314.5 million, in the largest Bay Area warehouse and distribution transaction this year.
The San Francisco-based firm, the world’s biggest owner and developer of industrial real estate, bought 11 buildings from California State Teachers Retirement Fund, the San Francisco Business Times reported.
The deal works out to about $330 per square foot for the nearly 1 million-square-foot portfolio. It was the largest transaction this year by both price and size, per Kidder Matthews.
Prologis already owns 13 buildings totaling more than 500,000 square feet at the Crocker complex. The complex is 95 percent leased with tenants including Ample Battery, Fanatics, Encore Expositions, Mytra Logistics Planning and Twist Bioscience, Wismattec Asian Foods, Unipart and Greenleaf.
The Bay Area’s artificial intelligence-driven comeback is pouring venture capital into the emerging sector. At the same time, e-commerce is driving leasing at warehouses in industrial complexes across the country. E-commerce accounts for almost 20 percent of new leasing with Prologis.
AI demand has been a crucial driver for Prologis’ industrial properties, with most of its properties benefiting from AI growth. Prologis’ latest acquisition in Brisbane speaks to the Bay Area’s strong fundamentals, company vice president and investment officer Bobby Gray told the outlet.
Industrial space is becoming increasingly tight in the region, with the San Francisco Peninsula being one of the most supply-constrained markets in the country thanks in part to limited land, steady rent growth and proximity to large population centers. Brisbane is one of the area’s last remaining clusters of industrial property, Gray said.
Another San Francisco-based firm, Sixth Street, also did a massive deal last month, in the United Kingdom. The firm recapitalized a 37-property, 1.7 million-square-foot industrial portfolio owned by Clipstone Industrial REIT for $472 million. Sixth Street and Clipstone formed a joint venture as part of that deal to buy more real estate assets.
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