Homelegance Leases 205,000 SF for Distribution

HAYWARD, CA-Home furnishings manufacturer Homelegance Inc. has leased 205,000 sf here for its second distribution center in the area. The five-year sublease expands its presence in the city to 533,000 sf, making it the largest warehouse user in Hayward and Union City. The building Homelegance will occupy is located at 21111 Cabot Blvd. It is subleasing the warehouse from Diagio-USA, which operated out of the space for years. When Homelegance moves in, it will vacate two other spaces totaling about 138,000 sf, resulting in 67,000 sf of net absorption.The parties involved did not reveal the lease rate on the deal but other local industry sources say the going full-service rate for older industrial space is around $0.30 per sf per month. Homelegance owner Rosa Chao says the economics of the deal combined with its existing workforce in Hayward “made this business decision an easy one for us to make.”Casey Ricksen with the Oakland office of Colliers International represented Homelegance Inc. in the transaction. Jay Haggland of BT Commercial represented Diagio-USA. Ricksen tells GlobeSt.com that local fundamentals are improving. “The Hayward market is getting tighter in the larger size ranges,” says Ricksen. “This just happened to come on the market when we happened to be looking.”(To read more on the industrial market, click here.)