- TRD Staff
Another company in the automobile industry is betting on Silicon Valley industrial with a new lease deal in San Jose, a move that follows in Tesla’s footsteps.
Auto parts distributor U.S. AutoForce leased approximately 93,000 square feet of an industrial building located at 930 McLaughlin Avenue in San Jose, the Mercury News reported, citingologis, the world’s largest logistics real estate company, owns the building, which spans 134,500 square feet in total
U.S. AutoForce is part of U.S. Venture, which distributes renewable and traditional energy products, lubricants, tires, and automotive aftermarket parts. The U.S. AutoForce arm is responsible for distributing tires, vehicle parts and lubricants to customers including tire retailers, auto repair shops and car dealerships.
Prologis has been inking large lease deals
Prologis has been inking large lease deals with tenants in Silicon Valley this year. Over the summer, Nvidia, the world’s most valuable company, secured a lease for 302,800 square feet at 5853 Rue Ferrari in south San Jose. And earlier this month, battery company Antora Energy signed a full-building lease spanning 294,000 square feet at 475 Sycamore Drive in Milpitas.
Prologis boasted the largest lease in the region last quarter with Quanta Computer’s deal for 198,768 square feet at 8311 Central Avenue in Newark, according to Kidder Mathews’ latest market report.
Industrial leasing activity in Silicon Valley climbed to 342,513 square feet in the third quarter and 1,758,153 square feet year to date, representing a 24.4 percent increase from the same point last year, per Kidder Mathews.
Industrial vacancy, meanwhile, has been on the decline as more companies snap up space. Total industrial vacancy in Silicon Valley in the third quarter sat at 4.6 percent, down from 5 percent a year prior. San Jose’s was slightly elevated above the regional average at 8 percent, Kidder Mathews’ data showed.
