May 9, 2022 9:00 AM
Newmark announces it has completed the sale of 1710 Automation Parkway, a 196,647-square-foot industrial building in San Jose, California. The recently renovated property is 100% leased to Quantum Scape (NYSE: QS). Current ownership and the existing tenant have made significant improvements to the property to create a state-of-the-art battery development facility.
Newmark Executive Vice Chairman and President, Western Region Capital Markets Steven Golubchik, Vice Chairman Nicholas Bicardo, Senior Managing Director Jonathan Schaefler and Director Darren Hollak facilitated the transaction.
“With a highly improved manufacturing facility, prime location within an infill market and substantial in-place cash flow secured by strong tenancy, 1710 Automation generated significant investor interest,” said Golubchik.
The Silicon Valley is known for its high concentration of revolutionary technology companies and unparalleled stream of venture capital. Over the past decade, growth from the region’s most prominent employers such as Google, Apple, Samsung, Netflix and LinkedIn has generated significant demand in the Silicon Valley and the North San Jose submarket across multiple property types. This growth has contributed to the area’s status as one of the nation’s top-performing commercial real estate markets.
The Silicon Valley industrial market began 2022 by building off the strong momentum gained at the end of 2021, according to Newmark Research. Despite low levels of available inventory, leasing activity remained healthy with positive absorption of 124,000 square feet during the quarter. Average asking rates increased quarter-over-quarter to $1.49 per square foot and the vacancy rate decreased to 3.7%, as of the first quarter of 2021. The San Jose single-tenant industrial market is comprised of approximately 2.0 million square feet, and since 2016, has recorded more than one million square feet of positive net absorption.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.