In more evidence of the heated Silicon Valley CRE market -- and the shrinking supply of available land for development -- Trammell Crow Co. and joint venture partner Principal Real Estate Investors have purchased 57 acres from Cisco Systems, Inc. near the tech company's existing campus in North San Jose, CA.
Finding such a large block of available land for development is rare in supply constrained Silicon Valley, and the site near Highway 237 will eventually include the first modern industrial facilities developed in San Jose in the past more than 15 years, the venture said in a release.
Other details of the sale were not immediately disclosed.
The JV is considering speculative industrial and build-to-suit development as well as breaking the site into smaller land parcels for sale.
"We've been looking for opportunities to do a high-quality business or industrial park in Santa Clara County," said John Greer, principal and head of Trammell Crow’s Northern California business unit. "There's a diminishing inventory of quality industrial space, and there are clear opportunities here for uses including assembly and light manufacturing, as some of these activities come back to the Bay Area from off-shore."
Rob Shannon, senior vice president with CBRE in San Jose, represented the joint venture in the deal. The project marketing team will also include Chip Sutherland, senior vice president with CBRE.