Apple signs a 10-year lease with 314,000, square feet industrial manufacturing space in Santa Clara County, California. The agreement is between Apple and project developer, McCarthy Ranch, a single-storey warehouse facilitates located at McCarthy Creekside. This is a multi-phase development with a new city of Milpitas, where Apple pays around 90 cents per square foot.
Silicon Valley’s vacancy rates already are 1.5 per cent, a deal reportedly is low. This is just around 0.7 per cent according to the Journal.
“The shortage availability warehouse space thus restricts the tenant mobility,” Lena Tutko, research manager for Colliers International, said. “Warehouse users left with options: One renewing lease – top four to five deals third quarter, or relocating outside the Valley.”
Thus, it is not a clear indication where Apple’s plans industrial space with north of San Jose, where developer Joey McCarthy told with McCarthy Creekside purposefully builds for “industrial, R&D, [and] manufacturing.”
Aside from specialist operations, Mac Pro facility in Austin, Texas, a majority of Apple’s manufacture is from outside the U.S. This adds an extra layer of intrigue with company’s intentions in Milpitas.
On the other hand, space indicates Apple’s autonomous car project, where Apple believes several Bay Area facilities with self-driving car research, McCarthy Creekside already home to autonomous drive R&D, building on the development leased to electric vehicle maker SF Motors.