Hayward Industrial Facility Sold for $37.5 Million
Investors acquired the 150,000-square-foot property, highlighting continued industrial demand in the East Bay.
Updated on Oct. 12, 2026 in Commercial
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Lincoln Property Company and New York Life Investment Management purchased an industrial facility in Hayward for $37.5 million. The property remains fully leased to the Outform Group through the summer of 2028.
Why it matters
The sale price represents a 262 percent increase over the property's 2016 purchase price, reflecting the significant appreciation of industrial assets in the area. This acquisition follows a period of robust activity in Hayward, which recorded over 600,000 square feet of industrial leasing in the third quarter of 2026.
The $37.5 million transaction for the 150,000-square-foot facility reflects a 262 percent price increase since 2016. Hayward maintained a 5.6 percent warehouse vacancy rate in the third quarter of 2026, lower than the 8.3 percent average for the broader East Bay.
The players
Lincoln Property Company
A real estate investment and management firm that operates and develops industrial and commercial properties.
New York Life Investment Management
An asset management firm providing investment solutions across various real estate and credit sectors.
PPF Industrial
The previous owner and seller of the Hayward industrial facility.
Outform Group
A retail solutions company currently leasing the facility through 2028.
JLL
A global commercial real estate services company that acted as the broker for the property sale.
The details
The facility was acquired from PPF Industrial in a deal brokered by JLL. New ownership is reportedly considering capital improvements, specifically increasing the building's power capacity to 4,000 amps, to potentially attract advanced manufacturing tenants once the current lease term ends. This investment strategy aligns with a competitive local market that saw total industrial leasing activity hit 618,462 square feet during the third quarter of 2026.
Timeline
2015: Prologis bought the facility for $9.9 million.
2016: PPF Industrial bought the facility for $14.3 million.
Q3 2026: Hayward recorded a 5.6 percent industrial vacancy rate.
Summer 2028: The current Outform Group lease term concludes.
Money Landscape
The transaction underscores the aggressive valuation growth for East Bay industrial real estate since the 2015-2016 period. It sits against a backdrop of tightening supply, as Hayward's vacancy rate currently tracks below the broader regional average.
Local property owners should note that rising industrial valuations may lead to increased property tax assessments in future cycles. Business owners leasing space should monitor regional vacancy rates, as current levels could signal potential rent adjustments upon lease renewal.
The takeaway
The sharp rise in value for this asset highlights how industrial demand has fundamentally reshaped local commercial real estate. Investors and owners should monitor quarterly vacancy data for Hayward, as these figures provide a signal for future rental and valuation trends in the sector.
Further reading
For more on market trends, visit Commercial.
Source note: This article includes information reported by The Real Deal New York.
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