Milpitas, CA Economic Overview
Milpitas is a city in Santa Clara County, situated within the Silicon Valley region. The city covers 13.6 square miles between two major freeways, the I-680 and the I-880. With Alameda County bordering directly to the north, Milpitas sits in the extreme northeast section of the South Bay, bordering the East Bay and Fremont. “Milpitas” translates to “place of little cornfields” from its Spanish name and was once used as a popular rest stop for travelers on the old Oakland-San Jose highway. Now commonly referred to as the “Crossroads of Silicon Valley,” Milpitas is globally recognized as a center of technology, innovation, and research and has experienced tremendous growth since its incorporation in 1954. The City is home to the corporate headquarters of several global companies, serving approximately 6,265 companies in total, including Adaptec, Intersil, Viavi Solutions, Lumentum Holdings, KLA-Tencor, Linear Technology, LTX-Credence, Sandisk, Sigma Designs, and Flex. Cisco Systems also maintains an office within the City limits. Milpitas is a progressive community that is an integral part of the high-tech Silicon Valley, home to diversified resident population of over 70,800. At the Silicon Valley Crossroads, the Milpitas commercial real estate is uniquely situated at the southern tip of the San Francisco Bay and enjoys the surrounding quality schools, neighborhoods, shopping centers, and community parks in the area. In 2014, Money Magazine ranked Milpitas 29th for the best places to live in the U.S.
Milpitas, CA Commercial Real Estate Market
The growing economy of Milpitas has seen rapid commercial development in the area. Milpitas offers the advantages of a metropolitan location with value-priced land, labor, and cost of doing business. The abundance of industrial and commercial properties ready for development creates attractive real estate prices relative to the rest of Silicon Valley. Currently, an estimated 410 acres of land are dedicated to regional and community retail centers supporting 3.5 million square feet of commercial shops. Milpitas is well-known for its Great Mall of the Bay Area, the largest enclosed mall in Northern California, with approximately 1.1 million square feet of leasable space for retail and entertainment operations. Several local shopping centers in Milpitas also serve regional needs for Asian-oriented retail and services. Notable development in the area include investments by Flextronics, Cisco, KLA Tencor, Micron Technology, Inc., and SGO with millions dedicated to tenant improvements in their buildings. Property owners of the former LifeScan campus and Tasman TechPark invested in redeveloping buildings and outdoor spaces to attract new tenants. Micron, a local company, has expanded at the Tasman Tech Park, and SonicWALL recently acquired 74,824 square feet of R&D space on McCarthy Boulevard in 2017.
The Fremont/Milpitas office market hosts over 3.2 million square feet of total office space inventory, at a current vacancy rate of approximately 10%. Most listings average at $36 per square foot per year, and the median size of office space is 1,960 square feet, with most properties rising up to two stories.
Milpitas, CA Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
Milpitas, CA Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Milpitas, CA Commercial Inventory Breakdown
Total: 9,511,967 SF
By square footage range:
- 50k to 100k SF: 1,978,166 SF / 20.8% of total office
- 100k to 500k SF: 4,921,461 SF / 51.74% of total office
- 500k to 1M SF: 1,558,968 SF / 16.39% of total office
- > 1M SF: 1,053,372 SF / 11.07% of total office
- Class A: 361,807 SF / 3.8% of total office
- Class B: 8,126,737 SF / 85.44% of total office
- Class C: 73,423 SF / 0.77% of total office
Total: 6,907,640 SF
By square footage range:
- 100k to 500k SF: 5,177,872 SF / 74.96% of total industrial
- 500k to 1M SF: 504,768 SF / 7.31% of total industrial
- > 1M SF: 1,225,000 SF / 17.73% of total industrial
- Class A: 4,137,605 SF / 59.9% of total industrial
- Class B: 2,770,035 SF / 40.1% of total industrial
Employment in Milpitas, CA
Milpitas enjoys a strong and well-educated labor force, primarily concentrated in high-technology jobs. The unemployment rate in Milpitas is 3.8%, with an annual job growth of 3.34%. The surrounding Santa Clara County also boasts a strong labor force of 1 million, primarily employed in Professional and Business Services. Milpitas has a dynamic high-technology economy, ranking first in the U.S. with the largest percent of residents employed in the computer and electronic products industry. The two largest employers in Milpitas are Cisco Systems and Sandisk Corp., employing over 2,500 each.
According to the Bureau of Labor Statistics, the industries in the San Jose-Sunnyvale-Santa Clara, CA area with the highest employment numbers include:
- Professional and Business Services—currently employs 227,800, growing at 1.4% per year
- Education and Health Services—currently employs 166,900, growing at 2.8% per year
- Manufacturing—currently employs 166,300, growing at 1.1% per year
Education in Milpitas, CA
Milpitas’ public schools are run by the Milpitas Unified School District, operating nine elementary schools, two middle schools, and two high schools. Currently Milpitas High is one of the biggest high schools in the county, with approximately 3000 students.
There are 65 colleges within 50 miles of Milpitas. The nearest college is Heald College San Jose, located just 1.8 miles from Milpitas center. University of Phoenix Bay Area Campus, Mission College, and Santa Clara University are all located under 10 miles from Milpitas, with world renowned Stanford University located 16 miles from Milpitas.
Commuting Time in Milpitas, CA
As with many other Californian suburbs, Milpitas has divided roads that are maintained well by the local city government. The main methods of transportation to and within the City include:
- State Route 237, Interstate 680, and Interstate 880 link Milpitas to the rest of the Bay Area. Interstates 680 and 880 lead north to Fremont and south to downtown San Jose. On the other hand, Highway 237 begins at Milpitas and goes west to Sunnyvale and Mountain View.
- Light rail service and local buses for public transportation provided by the Santa Clara Valley Transportation Authority (VTA). The northernmost stations of the Alum Rock – Santa Teresa light rail line serve the city. Three light rail stations lie within city limits: Montague, Great Mall/Main, and I-880/Milpitas. VTA bus routes in Milpitas are 46, 47, 66, 70, 71, 77.
- The nearest airports to the city are the Norman Y. Mineta San Jose International Airport (SJC) and Reid-Hillview Airport in East San Jose, the latter of which is for small private airplanes.
Employees in Milpitas face an average commute time roughly equal to the national average of 24.8 minutes. The largest share of workers drive alone, followed by those who carpoole and use public transit.
- Total Population75,498
- Male Population(50.0 %) 37,742
- Female Population(50.0 %) 37,756
- Median Age36.50
- Average Household Income$129,005
- Median Household Income$110,752
- Median Income Under 25$49,879
- Median Income 25-44$130,448
- Median Income 45-64$118,004
- Median Income Over 65$57,784