- WareSpace acquired two industrial buildings totaling 109,000 SF: 51,000 SF at 1215 Seamist Drive in Houston and 58,000 SF at 47651 Westinghouse Drive in Fremont, California.
- Both will become move-in-ready units of 200 to 2,000 SF with shorter leases and all-inclusive pricing, marking WareSpace’s second site in each metro and its first in the East Bay.
- Small-format warehouse space is scarce in established industrial areas, and WareSpace has raised $300 million to keep acquiring buildings for conversion.
WareSpace bought two industrial buildings totaling 109,000 SF in Houston and Fremont, California, and plans to convert both into small-bay warehouse units.
Each is the company’s second site in its metro. Houston’s is its first inside the I-610 Loop, and Fremont’s opens up the East Bay.
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The Properties
In Houston, WareSpace picked up 1215 Seamist Drive, a 51,000 SF building in Timbergrove, northwest of Downtown. Nearby neighborhoods include the Heights and River Oaks, and expressways connect it to the urban core.
In Fremont, the target is 47651 Westinghouse Drive, a 58,000 SF property in the Warm Springs corridor. The area is a manufacturing and industrial pocket close to Silicon Valley, a short drive from I-880 and I-680, and it pushes WareSpace past South San Francisco into the East Bay and San Jose.
The announcement did not include purchase prices.
The Plan
WareSpace will turn both buildings into move-in-ready units of 200 to 2,000 SF. Tenants get shorter leases, one bundled price and services on site, instead of a conventional long-term warehouse commitment.
The Houston deal builds on WareSpace Northwest, one of its earliest-owned facilities, which the company says has leased quickly and stayed highly occupied.
Adding to a Fast Pipeline
The buys follow WareSpace’s $36.5M portfolio in Miami Gardens and South San Francisco, which we covered October 2. That brief put the two buildings at about 164,000 SF and more than 210 flexible units.
We also covered its September purchase of 161 Starlite St. in South San Francisco, a 64K SF building WareSpace plans to split into 86 suites. The company has also raised $300 million.
Why It Matters
Joseph Ely, WareSpace’s co-founder and COO, said small-format warehouse space is getting harder to find in established industrial areas and is often taken offline. WareSpace is betting that scarcity supports demand for units this small.
Others are making the same bet. In our October 26 brief on BKM Capital’s small-bay push, BKM had bought $2.8 billion across 72 assets this year, and mid-bay completions were down 70% since late 2023.
What’s Next
CEO Levi Cohen said the company sees similar opportunities across the country and has the capital to pursue them. Expect more acquisitions in supply-constrained metros.
