Look what Apple has leased

314,000 square feet of industrial manufacturing space in Milpitas, Calif., does not an auto factory make.

From Janice Bitters, commercial real estate reporter, in Friday's Silicon Valley Business Journal:

Apple Inc. has signed a major lease for nearly 314,000 square feet of industrial manufacturing space at McCarthy Creekside, a brand-new, multiphase development in Milpitas, according to real estate records...

In the most recent McCarthy Creekside deal with Apple, the tech titan is rumored to be paying around $0.90 per square foot...

The first 136,000-square-foot building in the development was leased earlier this year to electric vehicle maker SF Motors, the U.S. Subsidiary of Chinese automaker Sokon Industrial Group.

My take: The clues are intriguing, but let's not jump to any conclusions. By comparison, Tesla's car factory in Fremont, below, fills 5.3 million square feet of manufacturing and office space.

milpitas tesla
Click to enlarge.

One Comment

  1. Jonathan Mackenzie said:
    I don’t care what they are planning on making there, I think news that Apple has decided it needs this manufacturing space is exciting.

    It’s hard to come up with reasons this would be bad and very easy to come up with highly positive scenarios. Maybe it’s for prototype cars. Maybe it’s for medical devices. Or robotics. Or glasses. Or battery research.

    I can’t wait to see what Apple does over the next ten years. They can push their chips around the table any way they choose. With their money and market status, they can pursue any promising lead or idea. News items that suggest new manufacturing interests are as welcome as higher iPhone ASPs. Maybe more so.

    October 21, 2018

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