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SAN JOSE-As long as rates stay within the $2 to $3 range office/research and development leases are still getting done all over the East Bay. Direct rates in San Jose are reportedly on the higher end of the spectrum, while areas like Santa Clara and Milpitas are at mid-range. Sublease rates remain reasonable in San Jose; in other areas there are still plenty of reasonable deals in direct lease space.

For example, Capella Photonics just got into a triple net sublease of more than 9,000 sf of office/tech space at 14517 Great Oaks Boulevard in San Jose. The 60-month deal went for a total $1.89 million or a monthly average of a little more than $3/sf.

TecHarmonic, a maker of pollution abatement equipment was the sublessor and was represented by Nick Whitstone of Grubb & Ellis. Mike Denevi of Cornish & Carey represented Capella Photonics.

Contrast that with the office lease between Ken Swanson and tenant Mend-Pak, Inc. in Milpitas. The 36-month lease for 1,296 sf at 162 S. Hillview Court here amounts of a consideration of about $2.60/sf or about $11 million over the long haul.

Logic Express Systems inked a triple-net lease for a total $469,000 plus in flex space at 14517 Scott Boulevard in Santa Clara. The effective rate works out to about $2.60 sf. Infinity Extrusion & Engineering leased 2,110 sf down the street at 14528 Scott Boulevard for at total $136,728 or about $2.70/sf monthly.

The landlord is Cal West Industrial Properties, LLC. Marty Chiechi of Grubb & Ellis represented the lessor and the tenant respectively in each deal. Cornish and Carey represented logic Express Systems.

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