Apple Seeks 800,000 Square-Foot Facility For Car Development Project

MAY 8 2016 BY STAFF 8

Apple Headquarters In Cupertino

Apple Headquarters In Cupertino

Victor Coleman, a notable San Francisco Bay Area landlord told WSJ that Apple seeks real estate in the area. He confirmed that Google (Alphabet), and multiple other automakers are actively searching out large real estate spaces as well. It was specifically reported that the areas may be used for autonomous vehicle development. Coleman said:

“We are seeing a definitive movement” by autonomous R&D companies. Which “seem to be a hot demand item.”

Google Headquarters Mountain View, CA (via Shutterstock)

Google Headquarters Mountain View, CA (via Shutterstock)

Coleman is the CEO of Hudson Pacific Properties Inc., a highly regarded, trend-setting property vendor with massive growth in areas including San Francisco, Silicon Valley, Palo Alto, Hollywood, Los Angeles, and Seattle. Coleman’s properties are homes to some of the most successful corporations in the U.S., including Uber and Netflix.

Although, as expected, Apple declined to comment, and Google was slow to respond, the prominent landlord’s first quarter investment call proved the report. Coleman commented:

“We’re seeing the Toyotas of the world, the Teslas of the world, BMWs, Mercedes. Ford now is out in the marketplace looking for space. I haven’t even mentioned the 400,000 square feet that Google’s looking to take down and the 800,000 square feet that Apple’s looking to take down for their autonomous cars as well.”

While the acquisitions of such properties in areas of saturated, expensive, prime real estate seem large, most auto factory’s spaces are much more monumental. Tesla’s plant in Fremont boasts 5.3 million square feet and that’s not even adding the incredibly enormous Gigafactory, recent leases, or future expansions that are already well underway. The new Apple headquarters is 2.8 million square feet and Google’s reaches 4.8.

Tesla just leased another million square feet with the possibility of even more. Apple already has at least two adjacent Sunnyvale buildings, with another down the road, and one in Germany, all reportedly specific to the Apple Car, that add up to well over a million square feet.

Coleman made the assuring comments about the autonomous sector and continued growth in Silicon Valley and elsewhere due to some recent concerns over the current “tech sector” and “futurists” growth and well being. He was apparently attempting to relieve analyst’s and stockholder’s concerns that these tech companies with lofty future goals are now taking over the market and a large part of the company’s future growth and income.

While Tesla is super prominent in the media, and Google (Alphabet) is never accused of hiding information, we all know the Apple is much more secretive about its ventures. However, acquiring multiple spaces, continually upping real estate, and moving in overseas, on top of the multiplex of major hires, cannot be ignored. Believe it or not, Apple is on to something, there is no doubt, but we honestly have no idea what or when.

Source: Wall Street Journal

Categories: Apple

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8 Comments on "Apple Seeks 800,000 Square-Foot Facility For Car Development Project"

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Silicon Valley is eating up Detroit.

I kinda feel sorry for Detroit. But other than the Volt & Bolt, they haven’t done much to push plug-in cars.

Detroit is in no current danger. They make their best profit on trucks followed by SuV’s.
With gas prices low people buy more big vehicles that suck a lot of gas.

Do you honestly expect Tesla and the other players not to move straight on into the light truck and SUV space once they have matured in the car space?
Expect them to be hitting the bus and heavy truck space sometime soon as well.
If they don’t the Chinese and other overseas groups already are!

Even if they did, Detroit won’t be in trouble.

The typical pickup truck buyer is the suburban cowboy. That sort likes to modify their trucks – raised/lowered shocks, flame motive stickers and most important of all, large exhaust pipes for that “cool tough guy” sound.

They won’t go for an electric truck. Maybe the contractors will, since they can expense out a Tesla truck and take depreciation.

Uh huh. A dying breed and not representative of the future.

Stimpacker said:

“The typical pickup truck buyer… won’t go for an electric truck.”

Yeah, the motorcar is just a passing fad. The typical horse buyer will never go for one of those newfangled things. GET A HORSE!

I own a Model S and several trucks (business). I would definitely buy a Tesla truck if one existed. For now, will have to stick with the turbo-diesels,

Dont feel too sorry for them, they have the resources to get in the game if they want to.