A class-A industrial facility in San Jose that is occupied has traded hands for $103 million. Quantum Scape fully occupies the property, which is used as a battery development facility. Located at 1710 Automation Parkway, the property is 196,647 square feet and has recently been updated.

Newmark executive vice chairman and president of the western region capital markets Steven Golubchik, vice chairman Nicholas Bicardo, senior managing director Jonathan Schaefler and director Darren Hollak brokered the transaction. According to Golubchik, the deal generated significant investor interest due to the strong infill location and strong in-place cash flow.

According to research from Newmark, the San Jose industrial market has performed well this year, despite low availability of supply. The first quarter saw 124,000 square feet of absorption with average asking rates increasing quarter-over-quarter to $1.49 per square foot and the vacancy rate falling to 3.7%. The single-tenant market, of which this facility is a part of, is particularly strong. The sector totals 2 million square feet, and since 2016, it has recorded more than one million square feet of positive net absorption.