Zoox, the Amazon-owned robotaxi company, has leased two large warehouses in Hayward, California, near the factory where it builds its vehicles. The San Francisco Chronicle first reported the deal. The new space covers more than 350,000 sq ft (roughly 32,900 square metres, by TSN’s conversion) and more than doubles Zoox’s footprint near its existing production site. The rent and length of the lease have not been disclosed.
The deal
According to the Chronicle, the lease covers two adjacent warehouses at 25500 Clawiter Road, in western Hayward’s industrial corridor just north of Highway 92. The buildings are owned by PGIM. Real estate firm JLL, which represented the landlord, announced the completed deal this week without naming the tenant, the Chronicle reports. Public records show that the city of Hayward has issued Zoox a business licence to operate at the warehouses.
The Registry, a Northern California property news site, puts the exact size at “a 353,653-square-foot commitment” covering both buildings at “PGIM’s LogistiCenter at Highway 92 in Hayward”, according to an excerpt republished by Real Estate Trail. The full Registry article is behind a paywall.
The Real Deal, which followed up on the Chronicle’s report, also says the lease is part of Zoox’s efforts to scale up production.
What Zoox says
Zoox gave a short statement to the Chronicle. “This facility will provide additional space as we scale our purpose-built robotaxi fleet, and we are excited to continue our commitment to developing our robotaxis in California,” a spokesperson said. According to the Chronicle, the company declined to share specifics on how the space will be used.
JLL declined to comment on the deal, the Chronicle reports, and CBRE, the brokerage that represented Zoox, did not respond to its request.
Zoox’s existing sites
Hayward is already home to Zoox’s production facility, a 220,000 sq ft (about 20,400 square metres) building at 25810 Clawiter Road. According to the Chronicle, it is part of Hines’ Exchange @ 92 industrial campus, built on the site of the former Gillig bus factory, and it opened last June. The facility “has the capacity to assemble up to 10,000 robotaxis annually, the company confirmed”, the Chronicle reports.
Zoox also leases a 34,000 sq ft (about 3,200 square metres) logistics and staging facility at 25555 Clawiter Road. Its headquarters is in Foster City, where it added about 200,000 sq ft of office and research space last year, according to the Chronicle.
The new lease puts three of Zoox’s facilities close to one another on Clawiter Road, The Registry notes. Zoox has not said whether the new space will be used for assembly, storage or something else, or whether it will raise the factory’s output.
The robotaxi
Zoox’s vehicles are purpose-built robotaxis rather than converted cars. The Chronicle describes them as boxy and carriage-like, with seats facing each other and no steering wheel or pedals. They are now carrying passengers in San Francisco and Las Vegas, according to both the Chronicle and The Real Deal.
The Real Deal notes that Zoox’s rival Waymo, owned by Alphabet, is so far dominating the autonomous ride-hailing market.
Hayward’s view
Hayward’s Chief Economic Development Officer, Paul Nguyen, described the deal in a statement as an example of the city continuing to “attract and accelerate the growth of modern manufacturing”, the Chronicle reports. He said advanced manufacturing companies supporting the AI and robotics industries are looking for “more than just buildings”.
“Major deciding factors include heavy power, connectivity to supply chain and labor markets and speed to market,” Nguyen said.
What we don’t know
- The rent and the length of the lease.
- What Zoox will use the new buildings for.
- Whether the extra space will change how many robotaxis Zoox builds.
What this means
- Zoox has leased more than 350,000 sq ft of warehouse space near its Hayward robotaxi factory, more than doubling its footprint there, the San Francisco Chronicle reports.
- Zoox says the space will help “as we scale our purpose-built robotaxi fleet”, but has not said exactly how it will be used.
- The financial terms are undisclosed. Zoox’s existing factory can assemble up to 10,000 robotaxis a year, according to the company.
Sources
- San Francisco Chronicle: Amazon’s Zoox more than doubles its robotaxi footprint in Bay Area city
- The Real Deal: Zoox doubles down in Hayward with 350K sf industrial lease
- Real Estate Trail (excerpt from The Registry): Zoox leases PGIM’s 354,000 sq ft LogistiCenter in Hayward
- The Registry: Zoox leases PGIM’s 354,000 sq ft LogistiCenter in Hayward (paywalled)
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