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5/22/24
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Work has started on Milmont Industrial, a new 267k sf Class A advanced manufacturing and distribution facility in Fremont, CA. The project is being developed by a venture of Hines Interests LP and Oaktree Capital Management, L.P. CBRE is marketing the facility for lease.
Milmont Industrial will be redeveloped from three buildings into a single brand-new industrial building with high clear heights, heavy power, ample parking, and loading docks. The project is located at 49000 Milmont Dr, just east of I-880 and south of Kato Rd.
“Milmont Industrial serves a need in the market for next-generation industrial facilities,” said Shawn Hardy, managing director at Hines. “Demand from advanced manufacturing for Class A industrial space continues to outpace existing market supply and we look forward to capitalizing on this increased demand.”
Situated in Fremont’s Warm Springs District, the area is known for its concentration of advanced manufacturing companies in the semiconductor, computer hardware, electric vehicles, clean technology, and life sciences industries.
In December 2023, CBRE’s Debt and Structured Finance team in San Francisco arranged a construction loan for Milmont Industrial. Industrial leasing activity and tenant demand in Silicon Valley increased in Q1 2024. Leasing activity was up 23.2% from Q4 2023, according to CBRE Research. Meanwhile, tenant demand was 4.81 msf at the end of Q1 2024, up from 3.72 msf in Q4 2023.
Supply is tight for Class A industrial properties in Silicon Valley that are 50k sf and above, which benefit companies that utilize robotics, automation, automotive and high-tech manufacturing. The average industrial tenant requirement in Q1 2024 was 127k sf, with tenants often needing ample power and high clear heights.
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