Cushman & Wakefield Inks 73,000-Sq.-Ft. Lease for Bestronics in San Jose, Calif.

Suite 203, December 30, 2015 (Newswire.com) - Bestronics, an electronics contract manufacturer, has leased a 73,000-square-foot industrial building at 2243 Lundy Avenue in San Jose, announced commercial real estate services firm Cushman & Wakefield. The transaction expands Bestronics’ neighborhood presence and completes the second-generation lease-up of a four-building, 250,000-square-foot manufacturing property developed for Flextronics in the mid-1990s.

Cushman & Wakefield’s Dan Hollingsworth, Steve Pace, Tom McGovern and Karen Sigl, based in the company’s San Jose office, represented property owner LD Odyssey, LLC in the long-term transaction.

"This site has come full circle, marking a resurgence in San Jose's International Business Park submarket."

Dan Hollingsworth, Cushman & Wakefield

The Hollingsworth team has been involved with the former Flextronics property from the outset, initially representing Flextronics in the land purchase and development. In 2006 they again represented Flextronics in the property’s sale-leaseback to Westcore Properties and the sale of the adjoining building, 2090 Fortune Drive, to LBA Realty. When Flextronics relocated to another site seven years later, Westcore Properties retained the team as marketing agent for its properties, as did LBA Realty for its building at 2090 Fortune Drive.

The group then orchestrated the lease of one 71,750-square-foot facility at 2090 Fortune Drive to Bestronics in 2013 and the sale of the three other buildings to LD Odyssey in 2015. LD Odyssey branded its three assets – two of which it occupies – as Lundy Avenue Research Park. The new Bestronics lease at 2243 Lundy Avenue marks the property’s full occupancy.

“This site has come full circle, marking a resurgence in San Jose’s International Business Park submarket,” Hollingsworth said. “We had three tenants vying for that final availability, and while asking rents for many years have fallen in the $0.60 per square foot range, this building ultimately leased for over $1.00 per square foot. This speaks to generally improved fundamentals as well as the strong return of the production manufacturing segment in the Silicon Valley.”

According to Cushman & Wakefield Research, industrial vacancy in Silicon Valley decreased to 3.7 percent during the third quarter of 2015, down from 5.7 percent at the same time in 2014. Manufacturing product closed the third quarter with vacancy of just 3.0 percent, compared to 5.4 percent the previous year.