Morgan Stanley Real Estate Investing Buys KLA-Leased 189,000 SQFT Milpitas R&D Building for $84.1MM
Why this matters
Industrial has moved into a normalization phase after the 2020-2023 frenzy. Vacancies are up modestly, sublease space remains a watch item in the big-box logistics segment, and rent growth has shifted from double-digit to mid-single-digit. The long-term tailwinds — nearshoring, e-commerce penetration, infill scarcity — remain intact. San Francisco continues to clear office at the deepest discounts to 2019 basis seen in the cycle, while multifamily fundamentals have stabilized and life sciences in the Peninsula remains active. Institutional capital is calibrating between core income and value-add basis plays as the cycle matures.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- The 175th San Francisco story tracked on the wire in September 2026. All San Francisco coverage →
- Disclosed industrial deal value tracked in September 2026: $5B across 38 reported transactions. All Industrial coverage →
Computed from Real Estate Trail’s own tracked coverage
All-Cash Buyer Pays $444 per SQFT, Well Above the Silicon Valley R&D Average, for KLA's Milpitas Data Center Hub A fund managed by Morgan Stanley Real Estate Investing has paid $84.1 million in cash for a Milpitas res…
External link. Real Estate Trail does not republish source content.
Related coverage — San Francisco · Industrial
Prologis Files Plans for 514,000 SQFT Data Center on Charcot Avenue in North San Jose
Prologis wants to tear down five aging North San Jose industrial buildings and put up a 99-megawatt, three-story data center at 326 Charcot Ave., betting that powered land is now worth more than flex space. Prologis h…
45,300 SQFT Flex Industrial Property Listed for $15.5MM Near STACK Data Center in San Jose
San Jose's push to align zoning with its General Plan — sparing owners a costly rezoning process — adds regulatory upside to a site marketed as move-in-ready infrastructure sitting in the middle of a rapidly expanding…
ACL Digital Recognized with 2026 TSMC OIP Partner of the Year Award for Design Service Excellence
ACL Digital earns recognition at the TSMC 2026 North America OIP Ecosystem Forum for delivering advanced design services for mutual customers across AI, Data Center, and IoT markets. SAN JOSE, Calif., Sept. 25, 2026 /…
Marcus & Millichap Arranges $7M Sale of Retail Center in San Jose, California
SAN JOSE, CALIF. — Marcus & Millichap has arranged the sale of Capital Commercial Center, a retail property in San Jose. A partnership sold the asset to a California-based limited liability company for $7 million, or…
Alexandria Extends $5B Credit Line to 2032 as Bay Area Sales Anchor $2.9B Deleveraging Push
Alexandria Real Estate Equities has pushed the maturity on its $5 billion revolving credit facility out to 2032 and shaved its borrowing spread, buying runway for a $2.9 billion capital-raising program that has leaned…
Oakland Retail Vacancy Headed to 6.8% as New Construction Falls to Lowest Level Since 2007
Marcus & Millichap's newly published third-quarter report on the Oakland metro forecasts retail vacancy rising to 6.8 percent by year-end and asking rents slipping to $29.80 per square foot, even as developers deliver…