- Prologis is moving forward with its 1.6M SF “SF Gateway” project, one of the largest industrial developments in San Francisco’s history.
- The project replaces WWII-era warehouses in Bayview Hunters Point with a sustainable logistics hub designed to support manufacturers, distributors, and light industrial users.
- Despite national industrial vacancy rising to 7.5%, Prologis points to renewed leasing momentum and posted a record 62M SF of lease signings in Q3.
- The project is expected to create thousands of jobs, generate millions in public benefits, and includes sustainability upgrades like a 3.2MW solar array and $50M in public infrastructure improvements.
San Francisco’s New Logistics Landmark
Global industrial REIT Prologis bets on a market rebound with a 1.6M SF logistics project in San Francisco, reports CoStar. San Francisco Supervisors approved the SF Gateway project to redevelop a 17-acre Bayview Hunters Point site into a major logistics hub.
The development—years in the making—will feature two large-scale warehouses, replacing four outdated structures from the WWII era. It’s being pitched as a “modern, sustainable logistics hub” designed to serve a range of industrial users from manufacturing to wholesale distribution.
Why It’s A Bold Move
Prologis’ green light comes at a time when the US industrial market is showing signs of softening. According to CoStar, national vacancy rates have climbed to 7.5% amid a flood of new supply and cooling demand. But the company sees signs of recovery.
CFO Tim Arndt recently pointed to stronger leasing activity and rising demand for custom-built facilities. In Q3, Prologis reported $2.2B in revenue—up 9% year-over-year—and signed a record 62M SF in leases.
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Local Impact: Jobs, Investment, And Infrastructure
Prologis says the project will generate nearly 2,100 annual construction jobs and about 2K permanent on-site positions. It has committed $8M to local programs and $11M toward capital improvements like sidewalks, ramps, and bike parking. Over time, the city expects to collect $7M in property taxes and $5.8M in general fund revenue annually.
The plan includes green features such as a 3.2-megawatt solar array and over 500K SF of active rooftop space. Prologis is also pledging all-union labor and funding for workforce training, early education, small business support, and public art.
Community Concerns And Environmental Legacy
Not all residents are on board. Some community members have voiced concerns about increased truck traffic and the potential for worsening air quality in a historically underserved area. Bayview is also home to the long-contaminated Hunters Point Naval Shipyard, a Superfund site awaiting cleanup.
Still, local Supervisor Shamann Walton called the Gateway project a major win, describing it as “one of the largest private investments Bayview has seen in decades.”
What’s Next
The project still requires final approval from the Board of Supervisors, but if it moves forward, SF Gateway could become one of the largest warehouse developments underway in the US. Only one California project—Amazon’s 2.5M SF facility in Hesperia—is currently larger.
With community benefits, green infrastructure, and renewed market optimism on its side, Prologis is positioning the Gateway project as both a logistical necessity and a community investment.
