BLP buys Stockton warehouse as AI demand squeezes Bay Area space
Bridge Logistics Properties picked up a 545,836-square-foot cross-dock in Stockton and a 198,676-square-foot site in Fremont, tying the deals to AI and advanced manufacturing demand.
BLP buys Stockton warehouse as AI demand squeezes Bay Area space
Key Takeaways
- BLP bought 1919 Boeing Way in Stockton, a 545,836-square-foot cross-dock leased to UNFI and Dollar Tree.
- The firm also acquired 45101-45169 Industrial Drive in Fremont, 198,676 square feet leased to Quanta Manufacturing and Stericycle.
- BLP linked the buys to tight Bay Area supply from AI and advanced manufacturing demand.
- The company says Fremont vacancy is about 2%, with Class A vacancy below 1%.
545,836 square feet in south Stockton just changed hands. Bridge Logistics Properties, a unit of Bridge Investment Group, said it bought 1919 Boeing Way, a cross-dock facility leased to UNFI and Dollar Tree. The firm also acquired a 198,676-square-foot industrial property in Fremont.
The company tied both deals to a simple point for Central Valley readers. As Bay Area firms tied to AI and advanced manufacturing absorb scarce space along I-880, trucking and distribution users keep shifting east into San Joaquin County where big-box space still pencils for them.
What BLP bought
BLP described the Stockton site as a cross-dock property with large-format logistics tenants in place. The Fremont building at 45101-45169 Industrial Drive is fully leased, with Quanta Manufacturing taking about 90% and Stericycle the balance, the company said.
Colliers brokers handled both transactions according to BLP, naming Mike Kendall, Nick Mascheroni and Greig Lagomarsino on Fremont, and Kendall, Mascheroni and Mike Goldstein on Stockton. No prices or cap rates were released.
Why it matters for the Valley
Paul Jones, a managing director at BLP, said the firm views Northern California as one interconnected industrial market. His read is that tightening along I-880 is pushing traditional logistics users inland, which keeps demand steady in places like Stockton, Tracy, and Lathrop. That has been the pattern in recent cycles when Bay Area costs run hot.
For warehouse operators in San Joaquin County, the practical effect is occupancy stability and fewer concessions on modern, large-bay space. For city halls and the county EDA, it can mean steady freight traffic and sales-tax touchpoints even if headcounts don’t spike overnight. New construction is slower than in the last rate cycle, BLP added, which limits fresh supply and could keep existing boxes full.
What the company says about supply
BLP cited a roughly 2% vacancy rate in Fremont in the second quarter, with Class A vacancy below 1%. The firm said the rent and valuation gap between Class A and B has widened to about 40%, compared with a more typical 15 to 20 percent. In their view, that gap could compress as advanced manufacturing and tech users compete for functional second-generation buildings, not just pristine new ones.
In Stockton, BLP framed the acquisition as the downstream effect of that squeeze. Large cross-dock sites are still drawing national credit tenants that want I-5 access and lower occupancy costs than the inner Bay Area. New tenants may follow.
What’s next
Sean Andrews, a vice president of investments at BLP, said the pair of buys captures both sides of the same market shift, one foot near Silicon Valley demand and one in the Central Valley where logistics users migrate for room and price. The company didn’t outline any immediate project work, tenant changes, or expansions at either site.
A yellow safety vest sat draped over a folding chair in the broker’s bullpen.
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