Dermody Acquires 606,343-Square-Foot Tracy, California Logistics Facility for $79.1 Million

Dermody has acquired 1269 E. Grant Line Road, a 606,343-square-foot Class A logistics facility in Tracy, California, the firm announced on Nov. 11, 2026. The purchase price was $79.1 million, or about $130.50 per square foot. The property is the newest addition to Dermody's West Region portfolio and, according to the firm, is one of the largest move-in-ready facilities available to a single user in the Central Valley.

Rebecca Perlmutter of CBRE National Partners represented the seller. Michael Goldstein, Ryan McShane and Alex Hoeck of Colliers will lead leasing for Dermody.

Property Details: 606,343-Square-Foot Cross-Dock Building

Completed in 2023, the cross-dock building sits on 29.3 acres and measures 600 feet deep and 980 feet wide. The building is vacant and available for immediate occupancy, and it can be divided to approximately 300,000 square feet.

Specifications include:

• 40-foot clear height
• 103 dock-high doors, including 51 mechanical pit levelers rated for 40,000 pounds
• Four grade-level doors
• 176 trailer stalls and 220 car parking stalls
• A 185-foot truck court that is fully fenced and secured with gated entries
• 4,000-amp, 277/480-volt, three-phase electrical service
• ESFR fire protection with K25.2 sprinkler heads
• LED lighting, 60-foot speed bays, an eight-inch reinforced warehouse slab and 60-by-56-foot column spacing
• Approximately 4,054 square feet of office space

Dermody Executives Cite Scarcity of Large Class A Space

"This property is well suited to customers in need of a large, modern facility, especially those in e-commerce fulfillment, distribution or manufacturing," said Shelagh Danna, Senior Vice President, Investments at Dermody. "Furthermore, it is ready-to-occupy with the scale, clear height and truck capacity modern distribution demands in a highly sought-after market."

Tim Walsh, Chief Investment Officer at Dermody, said, "Existing vacant Class A facilities of this size are exceptionally rare in the Central Valley; this asset provides customers with large requirements an excellent option in which to operate. This investment reflects Dermody's continued commitment to the Central Valley and to growing in the markets where our customers need us most."

Tracy Location and Logistics Access

The property has immediate access to Interstate 205, with additional connectivity via Interstates 5 and 580 to Silicon Valley, the San Francisco Bay Area, the Port of Oakland and San Francisco International Airport. Union Pacific and BNSF Railway intermodal facilities are within 20 miles, and customers can draw on a labor pool of more than 6.5 million residents within a 50-mile radius.

Tracy is one of the largest and most established logistics submarkets in the Central Valley and serves as the primary hub for the greater Bay Area and Northern California. Large-format buildings are driving the submarket's recovery. According to CBRE, facilities of 500,000 square feet or more accounted for more than half of the region's net absorption to date in 2026.

Central Valley Industrial Market Context

The Central Valley industrial market is recovering from elevated vacancy and substantial new supply. CBRE reported 140.7 million square feet of industrial inventory, 7.4% vacancy and 9.4% availability in the third quarter of 2026. The region recorded 435,000 square feet of positive net absorption in the quarter, bringing year-to-date absorption to 4.12 million square feet. Vacancy was down 200 basis points from the prior year.

Rents in Tracy are among the highest in the region. CBRE reported an average direct asking rate of $0.73 per square foot per month on a triple-net basis for the Central Valley in the third quarter, with Tracy at $0.78 per square foot, the highest among the cited submarkets.

Because the building is vacant, Dermody will lease it up rather than inherit an existing tenant roster, and Colliers' Goldstein, McShane and Hoeck will lead that leasing effort.

Sources

• Dermody: Dermody acquires 606,343-square-foot logistics facility in Tracy, California