Apple Signs Lease for Large Manufacturing Facility in Milpitas, California

[MacRumors]

Apple has reportedly signed a 10-year lease for nearly 314,000 square feet of industrial manufacturing space in Santa Clara County, California (via Silicon Valley Business Journal).

The agreement between Apple and project developer McCarthy Ranch is for a single-story warehouse facility located at McCarthy Creekside, a new multiphase development in the city of Milpitas, for which Apple is said to be paying around 90 cents per square foot.

Render depicting corner of 800,000 square foot industrial development in Milpitas​

Silicon Valley's vacancy rate was already a miniscule 1.5 percent, but the deal has reportedly made it hit an all-time low of just to 0.7 percent, according to the Journal.

"The shortage of available warehouse space is restricting tenant mobility," Lena Tutko, research manager for Colliers International, said. "Warehouse users are often left with two options: renewing their lease, as seen by the top four of five deals of the third quarter, or relocate outside of the Valley."

It's not yet clear what Apple's plans are for the industrial space north of San Jose, but developer Joey McCarthy told the Journal that McCarthy Creekside is purpose-built for "industrial, R&D, [and] manufacturing."

Aside from specialist operations like the Mac Pro facility in Austin, Texas, the vast majority of Apple's manufacturing takes place outside of the U.S., which adds an extra layer of intrigue to the company's intentions in Milpitas.

On the other hand, the space could indicate an expansion of Apple's autonomous car project. Apple is believed to be using several Bay Area facilities for its self-driving car research, while McCarthy Creekside is already home to autonomous driving R&D, with a building on the development having been leased to electric vehicle maker SF Motors.

Article Link: Apple Signs Lease for Large Manufacturing Facility in Milpitas, California

 

[neuropsychguy]

They have to make all those Apple Watch bands somewhere.

 

[cmaier]

I was just over there yesterday. Going to wonders for the traffic.

 

[Mactendo]

adds an extra layer of intrigue to the company's intentions in Milpitas

Apple Ship

 

[Ion-X]

If I had to take a guess, the only reason they are leading such expensive space is for R and D by HQ employees, not mass manufacturing. Probably the Car project because that requires large open spaces.

 

[KGB7]

It’s an Emoji R&D Headquarters.

 

[Kabeyun]

Aside from specialist operations like the Mac Pro facility in Austin, Texas...

There’s a Mac Pro facility? What on Earth do they do there?

 

[jecowa]

Apple was rumored to be designing displays at a small factory in California earlier this year. Maybe they are getting ready for mass producing some Apple displays.

source: https://www.bloomberg.com/news/arti...o-develop-displays-to-replace-samsung-screens

It might also be worth mentioning that Apple has a couple patents on folding displays using microLEDs.

 

[CTHarrryH]

I would think that location would be very expensive for manufacturing not only facility costs but for that type of labor. I know manufacturing is done mostly by machines but some labor is still involved with construction, shipping etc.
I would think special purpose facility as in car research

 

[lec0rsaire]

If a MacBook Pro suddenly had Designed in California/Assembled in California on it I would pay $1k more. It’s nice to see made in America for a change.

 

[samcow]

If a MacBook Pro suddenly had Designed in a California/Assembled in California on it I would pay $1k more. It’s nice to see made in America for a change.

I don’t know you, but sorry I really highly doubt that’s true. If there was an option for the $2500 MacBook assembled in china and then the exact same thing for $3500 assembled in the US, I don’t see you opting for the $3500 model.

 

[Craigy]

There is just a short amount of time before before all assembly will be automated and labour costs will be an almost irrelevant part of the manufacturing process. I can see almost all of Apple's manufacturing taking part in the new country of California once it becomes independent from the rest of the US (The last bit was tongue in cheek before someone gets angry.)

 

[rulymammoth]

If a MacBook Pro suddenly had Designed in a California/Assembled in California on it I would pay $1k more. It’s nice to see made in America for a change.

More power to ya. I sure wouldn’t. Would be fine with $100 more, but $1k? Nah.

 

[lec0rsaire]

I don’t know you, but sorry I really highly doubt that’s true. If there was an option for the $2500 MacBook assembled in china and then the exact same thing for $3500 assembled in the US, I don’t see you opting for the $3500 model.

Of course not but there would be if they stopped Chinese production. While I’ve never had a Mac Pro, I’ve always admired seeing USA on them. It’s a sign of the best quality with no compromises.

It’s like my guitars and amps. When I look at the back of my Mesa Boogie tube head and see handbuilt in Petaluma, California it just makes me feel good. That means that it was put together by proud workers who care about making the beat stuff possible.

 

[ruger]

This has to be for the manufacturing of the new Mac Mini that is almost certainly coming

 

[lec0rsaire]

I don’t know you, but sorry I really highly doubt that’s true. If there was an option for the $2500 MacBook assembled in china and then the exact same thing for $3500 assembled in the US, I don’t see you opting for the $3500 model.

Then why would I buy this? There are much cheaper options trust me! I don’t care about paying for quality.

 

[NoNothing]

It’s an Emoji R&D Headquarters.

That was good. Thanks.
[doublepost=1540159922][/doublepost]

This has to be for the manufacturing of the new Mac Mini that is almost certainly coming

That was done 6 months ago if it is coming this month.

 

[sinsin07]

Of course not but there would be if they stopped Chinese production. While I’ve never had a Mac Pro, I’ve always admired seeing USA on them. It’s a sign of the best quality with no compromises.

No, it’s a sign of your imagination trying to present itself as fact.

It’s like my guitars and amps. When I look at the back of my Mesa Boogie tube head and see handbuilt in Petaluma, California it just makes me feel good.

That’s nice and all but ¯\_(ツ)_/¯?

That means that it was put together by proud workers who care about making the beat stuff possible.

In order for the above to be true, you would need to show data substationing that statement.
Otherwise, again it’s just your imagination working overtime.

 

[MacManiac1]

Something isn’t right about this article. They are quoting 90 cents a square foot. Nothing is that inexpensive. Especially in a hot market like California.

 

[CarlJ]

The agreement between Apple and project developer McCarthy Ranch is for a sing-story warehouse facility located at McCarthy Creekside, a new multiphase development in the city of Milpitas, for which Apple is said to be paying around 90 cents per square foot.

Clearly this building will be used for manufacturing music of some sort.

 

[sinsin07]

Then why would I buy this?

1: No one knows if you bought that. It's a pic of a random arm wearing a Rolex.
2: Shouldn't you know why you buy something.

In any regard, this comment and pic below doesn't seem to jive with your previous comment:

snip...I’ve always admired seeing USA on them. It’s a sign of the best quality with no compromises....snip... see handbuilt in Petaluma, California it just makes me feel good. That means that it was put together by proud workers who care about making the beat stuff possible.

 

[rightontron]

Then why would I buy this? There are much cheaper options trust me! I don’t care about paying for quality.

 

[Michael Scrip]

While I’ve never had a Mac Pro, I’ve always admired seeing USA on them. It’s a sign of the best quality with no compromises.

USA! USA!

"I think we designed ourselves into a bit of a thermal corner..." - Apple Top Executive

oops...

 

[sinsin07]

View attachment 797200

USA! USA!

"I think we designed ourselves into a bit of a thermal corner..." - Apple Top Executive

oops...

So far the above two post win this thread.

 

[danny842003]

Of course not but there would be if they stopped Chinese production. While I’ve never had a Mac Pro, I’ve always admired seeing USA on them. It’s a sign of the best quality with no compromises.

Which is why American cars are so popular overseas.