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n a recent acquisition, KKR purchased a 209,700-square-foot logistics warehouse in Fremont for $79.5 million. The industrial building, known as Frontier Elm Business Center, is located at 47020 Kato Road. The seller was Link Logistics, a company based in New York. The deal was finalized at $379 per square foot. The building is currently occupied by RK Logistics Group, which claims to be the largest lithium battery distributor in the state. The company pre-leased the property while it was still under construction in July. The terms of the deal remain undisclosed.

    The region has become an attractive hub for companies such as Tesla, Boston Scientific, Delta Electronics, and Seagate. Despite the industrial market experiencing a cool-down since the pandemic, rapid development of warehouses has created a wider range of options for tenants, according to the San Francisco Business Times. In the East Bay area, industrial vacancy was recorded at 5.9 percent in the second quarter, up from 4.9 percent in the previous period, as reported by CBRE. Fremont's industrial vacancy rate was 3.8 percent. Net absorption across the region, which measures space leased minus space vacated, was negative 1.3 million square feet in the first quarter, down from 419,000 square feet in the previous year.

    Seagate is seeking to sublease part of its R&D campus in Fremont. Hines and Oaktree plan to build an industrial campus in Fremont, while Goldman and TMG have surrendered their Silicon Valley office campus to KKR.