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Industrial & Warehouse

San Jose Industrial & Warehouse Space Leasing & Sales

Warehouse, Flex, R&D & Manufacturing

Silicon Valley Industrial Leasing

The San Jose and South Bay industrial market contains over 60 million square feet of warehouse, flex, R&D, and manufacturing space — with lease rates ranging from $1.25 to $3.50+ per square foot per month depending on building type, clear height, and location. Jacob Sanchez CRE helps businesses find, lease, and acquire industrial properties across Silicon Valley’s primary corridors from North San Jose through Milpitas and Fremont.

Silicon Valley’s industrial market remains one of the tightest in the nation, with vacancy rates consistently below 5%. For businesses that need functional space — not office prestige — industrial real estate in San Jose delivers the best value per square foot in the Bay Area.

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What Types of Industrial Space Are Available in San Jose?

The South Bay industrial market serves a wide range of operational needs:

  • Warehouse/Distribution: Bulk storage and logistics facilities. Clear heights of 24-36 feet. Dock-high and grade-level loading. Typically 5,000-100,000+ SF. Best for e-commerce fulfillment, wholesale distribution, and third-party logistics (3PL) operators.
  • Flex Space: Hybrid buildings combining office and warehouse under one roof. Common split: 30-50% office, 50-70% warehouse. Ideal for tech companies with lab or testing needs, light assembly, and businesses that need both functional and professional space. Typically 2,000-20,000 SF.
  • R&D/Lab: Specialized buildings with upgraded electrical, HVAC, and ventilation systems. Common in North San Jose and Milpitas. Serves biotech, clean tech, hardware startups, and advanced manufacturing.
  • Manufacturing: Heavy-power facilities with 3-phase electrical, reinforced floors, and specialized ventilation. Food production, metal fabrication, electronics assembly. Requires specific zoning — Jacob verifies compliance before showing options.
  • Cold Storage: Temperature-controlled warehouses for food distribution, pharmaceuticals, and perishable goods. Limited inventory in the South Bay — highly competitive when available.

How Much Does Industrial Space Cost in the Bay Area?

Industrial lease rates in Silicon Valley are among the highest in the country, reflecting limited supply and strong demand:

SubmarketWarehouse ($/SF/mo)Flex ($/SF/mo)R&D ($/SF/mo)
North San Jose$1.50-$2.25$1.75-$2.75$2.25-$3.50
Central/Downtown SJ$1.25-$1.90$1.50-$2.50$2.00-$3.00
South San Jose$1.40-$2.00$1.60-$2.40$1.90-$2.75
Milpitas$1.50-$2.25$1.75-$2.75$2.25-$3.25
Fremont$1.25-$2.00$1.50-$2.50$2.00-$3.00
Newark/Union City$1.15-$1.85$1.40-$2.25$1.75-$2.75

Additional costs:

  • NNN charges: $0.10-$0.25/SF/month (lower than office due to simpler building systems)
  • Insurance requirements: Landlords may require $1M+ general liability and property coverage
  • Utility costs: Manufacturing and cold storage users should budget $0.15-$0.40/SF/month for electricity

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What Building Specifications Matter for Industrial Tenants?

Choosing the wrong industrial space creates operational bottlenecks that are expensive to fix. These specifications must match your operations:

  • Clear Height: Distance from floor to lowest obstruction (sprinkler heads, joists). Standard warehouse: 20-24 feet. Modern distribution: 28-36 feet. Taller = more vertical storage = more efficient operations.
  • Dock Doors: Dock-high doors accommodate standard semi-trailers (48 feet). Grade-level doors serve vans and smaller trucks. Count and type must match your receiving/shipping volume.
  • Column Spacing: Wider column spacing (40×50 feet or greater) improves racking layout and forklift maneuverability.
  • Electrical Capacity: Standard warehouse: 200-400 amps. Manufacturing: 800-2,000+ amps, often 3-phase 480V. Upgrading electrical is one of the most expensive retrofits — verify capacity before signing.
  • Floor Load Capacity: Standard slab: 150-250 PSF. Heavy manufacturing or cold storage may require 300+ PSF.
  • Yard/Trailer Parking: Logistics operators need secured yard space for trailer staging. Not available at all properties.

What Are the Best Industrial Areas in Silicon Valley?

Silicon Valley’s industrial inventory is concentrated in distinct corridors:

  • North San Jose (Montague/Trimble): Strong mix of flex, R&D, and light industrial. Proximity to I-880, SJC airport, and tech campuses. Tightest vacancy in the South Bay.
  • Milpitas (McCarthy/Montague): Growing hub for R&D and advanced manufacturing. BART accessibility (Milpitas station) is a recent advantage for employee commutes. Strong demand from biotech and hardware companies.
  • Fremont (Auto Mall/Warm Springs): Larger warehouse and manufacturing facilities, including Tesla’s Fremont factory. More affordable per SF than San Jose. Excellent I-880 access for distribution operations.
  • Newark/Union City: The value play — lower rents with acceptable proximity to the South Bay market. Growing demand from e-commerce and 3PL operators.
  • Central San Jose (Stockton Ave/Auzerais): Older industrial stock close to downtown. Smaller spaces suitable for contractors, artisan manufacturing, and maker spaces.

How Does the Industrial Leasing Process Work?

Jacob Sanchez CRE manages industrial transactions from initial requirements through occupancy:

  1. Operations assessment: Define your functional requirements — clear height, power, loading, yard space, floor load, and any specialized infrastructure.
  2. Site search: Jacob identifies properties matching your specifications, including off-market industrial opportunities.
  3. Facility tours: Walk viable properties with a focus on operational fit, not just aesthetics.
  4. Zoning and compliance verification: Confirm the property’s zoning allows your intended use — especially critical for manufacturing, food production, and hazardous materials.
  5. Proposal and negotiation: Jacob negotiates rental rate, NNN terms, landlord improvements, and lease flexibility.
  6. Environmental review: For older industrial properties, Phase I environmental assessments may be required. Jacob coordinates this process.
  7. Occupancy: Execute lease and coordinate move-in, including utility transfers and any landlord-funded improvements.

Average timeline: 45-90 days for move-in ready space. 90-180 days if buildout or permitting is required.

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Client Feedback

Hear what the Silicon Valley is saying about it's most trusted Commercial Real Estate Partner!

"Over the past few years, I’ve had the pleasure of working with Jacob on various commercial projects. His market knowledge, analytical skills, and negotiation expertise consistently translate into favorable terms and seamless closings for us. Jacob attentively listens to our business needs, presents well-qualified options, and demonstrates creative thinking to structure deals that benefit all parties involved. Throughout every transaction, he maintains clear communication, responds promptly, and diligently follows through on every detail, ensuring an efficient and stress-free process."
Keeley Horton
Keeley HortonCEO at Natural Orange Inc.
DBA Planet Orange
"Jacob went above and beyond to help us find the right space, even though our needs weren’t his primary specialty. He took the time to understand our business, was professional and dedicated throughout the process, and genuinely cared about finding the best fit for our company. I highly recommend him."
Angela Bahre
Angela BahreActing CEO - CSLOT
Center for Speech, Language,
Occupational Therapy, and
Applied Behavior Analysis
"We had an absolutely wonderful experience working with our commercial real estate agent. From start to finish, Jacob was professional, knowledgeable, and incredibly helpful. He took the time to understand what we were looking for and asked identifying questions that helped us navigate a variety of suitable options quickly. We felt informed and confident in every decision. Jacob was always responsive, organized, and managed timelines seamlessly, which made the entire experience feel smooth and stress-free. He consistently went above and beyond, whether it was answering last-minute questions, coordinating details behind the scenes, or offering thoughtful advice tailored to our needs. His expertise and calm approach made what could have been a stressful process feel manageable. We are so grateful for Jacob's dedication and would highly recommend him to anyone looking for a knowledgeable, professional, and trustworthy real estate agent. "
Elli LiDr Xu's Admin
Dr. Weiwei Xu, M.D. | Urology
" I had the pleasure of working with Jacob Sanchez for nearly two years, and I can’t recommend him highly enough. Throughout the entire process, he truly looked out for my best interests. In a market full of difficult and sometimes unrealistic listings, Jacob managed to find a fantastic space and thoughtfully recommended the option that made the most sense for me. What stood out the most was his patience and dedication. I was working under a tight timeline towards the end and it was critical to secure a location that would work. Jacob really stepped up—he worked incredibly hard, stayed persistent, and made sure we kept moving forward. His professionalism, work ethic, and genuine commitment to his clients made a stressful process much easier. I’m very grateful for the effort he put in and would absolutely recommend him to anyone looking for a commercial real estate agent. "
Lorraine Lim Owner, Ca Bake Shop
" I needed my new location to have everything on my list and I had nine days to find it. Jacob found six possible locations that would have worked. We saw them on the first day. I’m in one of them. Listening to you is his super power. Call him first. "
Melanie MeadowsLongarm Quilting
" Jacob took the time to understand the wants and needs of my business and was able to see my vision for growth and was very involved in search for a location that would meet our needs. I have had a great experience working with him and he was able to show me many different properties that would meet our needs and left the decision on which properties best fit. We were able to use two offers against each other and stand our ground so to speak on what we felt the market value is and come in at a lower cost based on his guidance. I would highly recommend Jacob for your commercial real estate market needs. Jacob found six possible locations that would have worked. We saw them on the first day. I’m in one of them. Listening to you is his super power. Call him first."
Art BeverleighOwner MDC Systems
"Two years ago, when our company was looking for an office in the Bay Area, Jacob was incredibly enthusiastic, patient, and professional throughout the entire process. Thanks to his expertise, he helped us quickly find the right space and negotiate a very favorable rent. Now, as our lease is coming up for renewal, we turned to Jacob again for help. He communicated with the landlord tirelessly on our behalf and successfully secured one month of free rent for us. On top of that, the rent for the first year of the renewal is almost the same as what we are currently paying. We truly appreciate Jacob's hard work and support, and we are very grateful for everything he has done for us."
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Aaron LiuCEO
Builtech Construction Group Inc.
"Working with Jacob to find a new office for my business has been an absolute pleasure. Throughout the entire process he was incredibly patient, taking time to help find the perfect location to bring my vision into fruition. He operates his business with absolute professionalism and integrity, and it is clear that he truly cares about his clients and puts in every effort to make sure they are being heard. I will continue to work with him should I need to relocate my business. He also helped my husband find a location for his business, and that went very smoothly. Jacob is an all-star in his field."
Lisa LynchSpecialized Chiropractic
San Jose, CA

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Whether you need 1,500 square feet or 50,000, Jacob Sanchez CRE provides the local market expertise and hands-on guidance to help you secure the right commercial space in Silicon Valley. Call (408) 603-8943 for a free consultation.

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