By Kate Snyder
April 4, 2023
Silicon Valley’s leasing market is seeing more space put up for grabs. An electric vehicle manufacturing company that occupies an 85,017 square foot building in San Jose appears to not be renewing its lease as the property has hit the leasing market, according to marketing information from Colliers and CBRE, which are both the listing agencies on the property. The building is located at 3200 North 1st St. and is currently leased to NIO USA, Inc., which is headquartered in China.
The building is owned by SPI Holdings, according to property records, which purchased the asset in 2018 for $30.2 million, or approximately $355 per square foot. The seller was KBS Realty. In 2015, NIO signed a lease agreement for the property, according to CompStak, which is scheduled to expire in 2023.
Rob Shannon, executive vice president at CBRE, and Craig Fordyce, executive vice president at Colliers, are the brokers for the property. Shannon said the property would be perfect for uses related to automotive technology, medical devices, light life science or any lab/engineering-driven functions.
The site on North 1st Street is close to housing, entertainment, transportation services and a number of retail and commercial properties. According to the marketing information, the location has access to Interstate 880, U.S. Highway 101 and State Route 237. Both the River Oaks and Orchard VTA light rail stations are minutes away from the site. Also nearby is downtown San Jose and San Jose International Airport.
The two-story, Class A office/research and development building has a mix of creative office and R&D space, marketing information shows. The asset includes a two-story high-bay warehouse area, 10-foot ceilings in office and lab areas and on-site gym and showers. Other features include electric vehicle charging stations – four dual heads and one single head – and a cafe-style break room with glass doors providing indoor-outdoor connectivity with an enclosed outdoor amenity area.
NIO was founded in 2014 in Shanghai and has offices throughout the world, according to the firm’s website. Its sole office in the United States is in San Jose.
“We build smart electric vehicles, provide premium services and create innovative charging solutions,” the firm’s website states.
Last year, NIO signed a 10-year lease for an office building at 3151 Zanker Road, according to previous information from The Registry. NIO planned to use the 201,500 square foot building as a research and innovation center that would support a variety of functions for the company including research and digital development, testing, assembly, warehousing and operations.