In the heart of Oakland, Prologis is redefining industrial real estate with a bold new proposal: a 430,000-square-foot warehouse set to become the city’s largest industrial project currently in planning. This San Francisco-based developer, renowned for its significant presence in Oakland, continues to address the high demand for industrial space even as new developments flood the market.
The proposed project, slated for the 29-acre site at 3600 Alameda Avenue, represents Prologis’ commitment to Oakland’s business ecosystem. This property, previously housing the Owens-Brockway glass recycling facility, is poised for transformation as the outdated structures make way for state-of-the-art facilities.
Navigating a Shifting Market Landscape The Oakland industrial market is evolving, with 2.4 million square feet of new supply entering in 2023 and projections for another 1.3 million square feet in 2024. This influx has nudged the vacancy rate from 4.2% to 6.4%, yet tenant demand has been resilient. Asking rents have remained stable, even climbing 2% higher, reflecting Oakland’s premium value—40% above the national average.
Prologis has not only kept pace with this dynamic market but also thrived, securing substantial leases in the East Bay. Recent deals include a 200,584-square-foot lease with Torani in San Leandro and a 128,168-square-foot lease with Lansum International in Oakland.
More Than Just Warehouses Prologis’ ambitions extend beyond traditional industrial projects. In Alameda, the company is nearing the acquisition of the former Raiders training facility in partnership with Oakland Pro Soccer. While the site will initially serve as a home for the Oakland Roots and Oakland Soul soccer clubs, its zoning for commercial manufacturing opens up long-term possibilities for redevelopment.
“Our local expertise enables us to make strategic decisions that benefit both our clients and the community,” Prologis emphasized in a statement.
As this project heads to a planning commission vote, Prologis’ vision reflects the broader trends shaping Oakland’s industrial market. With logistics and fulfillment companies driving demand, the East Bay remains a competitive hub for industrial real estate—a trend that will continue to follow closely.
