According to a new report from Silicon Valley Business Journal, Apple has inked a deal to lease over 300,000-square-feet of industrial manufacturing space in Santa Clara County, California. Apple’s leasing deal comes as industrial warehouse vacancy continues to shrink in the area.

Citing real estate records, the report says that Apple has leased 313,978-square-feet of space at 407 N. McCarthy Blvd in Milpitas, a city in Santa Clara County. Apple is said to have signed a 10-year lease for the building, paying roughly $0.90 per square foot.

Apple’s lease of this warehouse space comes as overall warehouse vacancy in Santa Clara Valley has hit a new all-time low. According to the report, the vacancy rate has fallen from 1.5 percent to 0.7 percent following Apple’s lease.

“The shortage of available warehouse space is restricting tenant mobility,” Lena Tutko, research manager for Colliers International, said. “Warehouse users are often left with two options: renewing their lease, as seen by the top four of five deals of the third quarter, or relocate outside of the Valley.”

Apple has yet to confirm this deal, while McCarthy Ranch – the developer behind the warehouse facility – confirmed it had been leased, but would not comment on details.

Additionally, Milpitas City Manager Julie Edmonds-Mares said that Milpitas has not received any information or applications related to the lease. She added, however, that the city of Milpitas is glad to welcome a new tenant: “While the City of Milpitas has not received an application at this time, it is always exciting to welcome a tenant to our great city.”

Source: 9to5mac