LATHROP, CA—Tesla Motors Inc. has signed a lease with Transpacific Development Co. for 430,770 square feet of space at 18260 Harlan Rd. here. The terms of the transaction were not disclosed, but the parties involved say it is one of the largest new industrial leases in Northern California in the past year.
The property is adjacent to I-5, has excellent freeway access and visibility and allows for tenant expansion if needed. In addition to the existing building, the property has excess land in the event that Tesla continues on its growth track.
Tesla was represented in the transaction by Greg Matter, VP, and Bob Taylor, EVP, of JLL. TDC was represented by Kevin Dal Porto and Blake Rasmussen, SVPs of CBRE.
According to Thomas Irish, president of TDC, “Tesla is one of the most dynamic, innovative companies in the world today, combining world-class automotive design with high-tech, environmentally friendly features. We are pleased that this cutting-edge firm has selected TDC as its landlord for this new facility.”
He adds that the property is a good fit for Tesla based on the existing improvements, high visibility and expansion opportunities.
Irish also says that the transaction came about “very quickly, and both parties mobilized their respective teams to accomplish an enormous amount of work in a short period of time. Tesla is in a hyper-competitive industry that is evolving very rapidly, and it was important to craft a transaction that addresses not only where Tesla is now, but where they will be in the future as well.”
As GlobeSt.com reported in April, JLL’s senior managing directors Louis Tomaselli and Bart Reinhard used a fact about Tesla in a presentation during an industrial business-line event. The fact, which was one of the “Industrial 10” compelling industrial facts and trends in the US, was that in Fremont, CA, Tesla started building a Model S, completely in-house, beginning with a 10-ton steel coil, and through the use of smart carts and 160 robots, employed only 3,000 people to build 1,000 cars per week.