Tesla Leases 1 Million Square Feet Of Warehouse Space Branching Out From Bay Area
In its preparation to significantly ramp up production, Tesla Motors leased two buildings in Livermore, 20 miles out from its factory in Fremont. The two buildings at the Oaks Logistics Center, developed by Trammel Crow Company, total over 1 million square feet, with the option of more.
The first building rings in at 635,000 square feet alone. Another building (known as the Building 3) adds 368,000 more square feet of space. Apparently, Tesla could be planning to lease the 300,000 square foot Building 2 as well if needed. The buildings are adjacent to the Livermore Municipal Airport, and will mark some of the largest industrial space in the Bay Area. The property will also boast LEED Silver energy efficiency rating credentials. John Boyd Jr., a site selection expert explained:
“Sure, we get it about the traffic and timeline between Fremont and Livermore, but the site, its LEED credentials, its central location, interstate access and exposure all carry the day here.”
Boyd also assumes that Musk could have additional plans for the space. He said:
It could “play a role in Elon Musk’s interests in serving The Bay Area in sectors, including solar and who knows — intergalactic travel.”
Sources are reporting that the site will be used primarily for warehouse space and storage. Up until now, Tesla has packed its Fremont factory full, and the focus there needs to be solely on manufacturing.
Tesla is continually adding real estate to its portfolio. Last year it acquired a 300,000 square foot building in Fremont that is now completed and operational. Following this, another Fremont building was leased. A 500,000 square foot manufacturing building. Now, however, it appears that the company is branching out further from Fremont to increase the worker base.
Tesla and all other parties involved have declined to provide any further details. Sources say that the company is paying 57 cents per square foot per month for the new space. Availability in the area is very slim, and the Silicon Valley and East Bay areas are completely saturated. Most new development near Fremont is already set aside for other companies.