Redco Development just wrote a $42 million check for a vacant 13-acre industrial parcel in Sunnyvale, with plans to turn the empty dirt into a high-quality industrial project in the West Valley. The move lands among a small but growing batch of Bay Area land deals that hint at renewed appetite for well-located logistics and small-bay industrial sites.
According to the Silicon Valley Business Journal, the seller was Valacal Company, a unit of UPS, and the sale was recorded last Tuesday at roughly $42 million for about 13 acres. The outlet identified the buyer as San Francisco-based Redco Development and reported that the site sits in the western Valley near major highways and Levi’s Stadium.
Commercial property listings and county-record summaries list Valacal as the prior owner, according to property records on Crexi. Those records align with reporting pointing to a corporate seller tied to UPS.
Why The West Valley Keeps Drawing Industrial Money
Developers are still hunting for compact industrial sites around the Bay Area because modern, well-located buildings tend to win higher rents and lease up faster, even while construction costs stay stubbornly high. Cushman & Wakefield's MarketBeat shows that Silicon Valley industrial vacancy will remain tight into late 2025, highlighting ongoing demand for last-mile and small-bay product.
Redco's Bay Area Playbook
Redco has been working a familiar strategy across the region, scooping up underused office and industrial properties and repositioning them for modern tenants, according to its company blog. The firm has been chasing value-add deals in San Francisco and nearby submarkets as it builds out a larger Bay Area development pipeline.
The Silicon Valley Business Journal also reported that Redco expects to break ground on the Sunnyvale project in the near term, with the exact schedule hinging on permits and entitlements. City planning filings and county records will offer the first real look at the project’s scope and timing, and close watchers will be scanning for building permits and environmental reviews over the coming months.
For local tenants and investors, the deal is one more reminder that functional industrial land in Sunnyvale is still scarce and still pricey, especially when it comes with highway access and proximity to the Valley’s logistics corridors. We will keep an eye on public filings and any community outreach as Redco’s land buy moves toward an actual development plan.
