Galvanize Real Estate Acquires 302,447-Square-Foot Cadillac Court Industrial Portfolio in Milpitas from Newmark-Represented Seller

MILPITAS, Calif. — Sept. 18, 2026 — Galvanize Real Estate has acquired the Cadillac Court Industrial Portfolio, a 302,447-square-foot, four-building industrial campus in Milpitas, California, in a transaction arranged by Newmark. The deal brings a sustainability-focused buyer into one of Silicon Valley's most tightly held industrial submarkets at a moment when advanced manufacturing and artificial intelligence tenants are driving a pronounced upswing in regional demand.

Deal Details: Cadillac Court Industrial Portfolio

The campus sits directly adjacent to Interstate 880 and provides immediate access to State Route 237. Built between 1991 and 1994, the four-building portfolio spans 302,447 square feet and was approximately 95% leased at the time of sale, offering Galvanize Real Estate immediate income continuity with minimal lease-up risk.

The property features 61 dock-high doors, 16 grade-level doors and approximately 8,000 amps of power — a specification that aligns with the requirements of AI hardware, electronics assembly and advanced manufacturing users. Tenants span millwork and fabrication, corporate services, technology and distribution uses, reflecting the campus's hybrid industrial and flex profile.

Newmark Executive Vice Chairman and President, Western Region Capital Markets Steve Golubchik, Vice Chairman Edmund Najera, Senior Managing Director Darren Hollak and Director Brendan Raney represented the seller. Executive Managing Director Kevin Hatcher advised on the transaction as a local market expert. The buyer, Galvanize Real Estate, is the sustainable real estate strategy of Galvanize.

Location and Competitive Positioning

The Cadillac Court campus occupies an infill position within a submarket characterized by significant institutional ownership. Neighboring technology and industrial occupiers in the immediate area include Tesla, Amazon, SeaGate, Supermicro and Bloom Energy. The campus is also situated near McCarthy Ranch, one of Milpitas' established retail destinations, providing workforce amenities that Newmark cited as a factor in tenant retention.

"The property's combination of scale, functionality and location drove significant interest from institutional capital," said Darren Hollak. "Cadillac Court sits in one of Silicon Valley's most established industrial corridors, surrounded by leading employers, retail amenities and transportation infrastructure that continue to attract and retain high-quality tenants."

Steve Golubchik pointed to broader market dynamics as a driver of investor interest. "The Silicon Valley industrial market is seeing stronger leasing activity, declining vacancy and more demand from advanced manufacturing and AI-driven companies," he said. "Cadillac Court offered the opportunity to invest in that momentum in one of the Bay Area's most tightly held industrial submarkets."

Silicon Valley Industrial Market Context

The acquisition comes as Silicon Valley's industrial market has recorded a material strengthening of fundamentals. Industrial leasing activity in the region increased 60.4% quarter-over-quarter and 55.4% year-over-year during the second quarter of 2026, driven by large commitments from advanced manufacturing and AI-related occupiers.

Market vacancy declined to 6.2% in the second quarter, while net absorption reached 1.4 million square feet year-to-date, even as more than 714,000 square feet of new product was delivered to the market. Asking rents rose 5.1% year-over-year, and sublease availability fell 26.0% during the quarter — a signal that shadow vacancy is being absorbed and occupiers are recommitting to space across the region.

Average asking rents for Silicon Valley industrial space stood at approximately $20.04 per square foot annually on a triple-net basis as of the second quarter of 2026, with some market trackers placing total vacancy as low as 4.4% depending on how flex and R&D product is classified within the broader industrial inventory.

About the Parties

Newmark Group, Inc. (Nasdaq: NMRK) is a commercial real estate advisory and services firm serving institutional investors, global corporations and lenders. For the twelve months ended June 30, 2026, Newmark generated revenues of more than $3.6 billion and operated from over 195 offices with more than 10,000 professionals across four continents.

Galvanize Real Estate is the sustainable real estate investment strategy of Galvanize. The Cadillac Court acquisition positions the firm as a new institutional owner within the Milpitas industrial corridor, a submarket that has attracted sustained capital interest from major real estate investors given its proximity to Silicon Valley's technology and advanced manufacturing base.

Sources

Newmark Press Release: Newmark Arranges Sale of Four-Building Industrial Portfolio in Silicon Valley