DUBLIN — The U.S. subsidiary of a major Japan-based construction and real estate firm has bought a large office complex in Dublin, hinting at confidence in East Bay commercial property markets despite coronavirus-linked economic uncertainties.
Toda America, a unit of Japan-based Toda Corp., bought Hites Plaza at 5601 Arnold Road in Dublin on Dec. 18, according to Alameda County property records.
The buyer paid $34.7 million for the building, which totals 120,200 square feet and is located at 5901 Arnold Drive on the eastern side of Dublin.
The transaction was arranged through Colliers International broker Brian Lagomarsino and the Colliers Institutional Capital Markets team.
The primary tenants in the building include Easter Seals, the state Justice Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The just-purchased building is about 90% leased, according to Colliers.
“The relevance of the office has been brought into question this year as many of the Bay Area’s companies have adopted long-term work from home policies in response to COVID,” said Kevin Moul, a senior vice president of Colliers Institutional Capital Markets Team.
The deal hints at confidence in suburban office markets such as Dublin, even in the face of coronavirus restrictions and concerns.
“The significance of this deal is underscored by recent relocation announcement from major Bay Area companies, some of which are opting to move to suburban areas,” Moul said.
An exodus of companies that have decided to defect from San Francisco is well underway, and the East Bay could capture some of the corporate refugees.
“The Tri-Valley is well-positioned to meet the growing suburban office trend,” Moul said.
