Robotics Startups Lease Hundreds of Thousands of Square Feet on the Peninsula as They Move to Commercial Production

Robotics Tenants Are Grabbing Big Blocks on the Peninsula. Here's What Owners, Brokers, and Builders Need to Prep

Robotics startups are moving from demos to delivery. They're leasing hundreds of thousands of square feet on the Peninsula to stand up assembly, testing, and light manufacturing.

For real estate and construction teams, this isn't typical flex or lab. It's production with lab-adjacent needs-tight tolerances, higher power, clean assembly zones, and logistics that move on a weekly cadence.

Why this shift matters for your portfolio

Production locks tenants in longer and drives heavier TI, but it also raises the bar on building capability. If you can support commissioning and small-batch runs now, you earn the right to capture expansion later.

Miss the infrastructure, and deals slip to markets with ready power and faster utility timelines. The demand is real; the bar is clear.

What robotics tenants actually need from buildings

• Power and distribution: 480V three-phase, multiple panels, clean power, isolated grounds, and redundancy where possible.
• Floor capacity and flatness: assembly cells, precise conveyors, and heavy pallets require higher slab ratings and low vibration.
• Clear height and craneway options: room for equipment, test rigs, and potential bridge/crane integration.
• ESD-safe and clean assembly zones: grounded floors, controlled particulates, and segmented spaces for QA.
• Mechanical: balanced HVAC with make-up air for soldering, machining, adhesives, and thermal testing.
• Loading and flow: dock-high or grade-level mix, 53' trailer access, and short, efficient paths to staging.
• Data and controls: fiber, private networks, and separate VLANs for machines, QA, and office.
• Safety and storage: designated areas for batteries, solvents, and compressed gases with proper enclosures and monitoring.

Zoning, permits, and code-get ahead of delays

Confirm use classification early. Many "R&D" leases tip into light manufacturing once assembly lines and testing rigs come online. That triggers a different plan check path, fire review, and potential hazmat disclosures.

Map egress, ventilation, and machine guarding requirements into the initial design set to avoid rework. For reference, see OSHA's General Industry standards for machine safety and controls here.

Lease structures that fit production

• Phased commencement: rent starts by area or milestone (office first, assembly later) to match commissioning.
• Utility and power contingencies: rent relief or extensions if service upgrades slip.
• Equipment and vibration rights: defined windows and methods for moving/heavy installs.
• Hazardous materials allowance: clear thresholds, storage specs, and reporting cadence.
• Expansion and ROFR: production ramps fast-lock in adjacent options now.
• Decommissioning standards: logical end-of-term plans for anchors, trenches, and specialty lines.

Conversion playbook for owners and GCs

• Electrical first: verify transformer capacity, fault current, and panel locations. Pre-wire spare conduits to speed line changes.
• Slab and structure: test slab thickness, reinforce where equipment sits, and plan vibration isolation pads.
• MEP zoning: carve office, lab, and assembly into separate controllable systems for cost and comfort.
• Logistics flow: shorten the path from dock to line; add staging near QA and outbound.
• Safety plan: designated battery/chemical storage, spill containment, and monitored ventilation.

What to highlight in your marketing package

• Verified available kVA, panel counts, voltage, and upgrade options with utility notes.
• Slab specs, clear height, dock/grade mix, truck court depth, and turning radii.
• Documented fiber providers and route diversity.
• Any prior light manufacturing or lab use-plus existing permits and as-builts.

Key risks to underwrite

• Utility lead times: service upgrades can stretch schedules.
• Permitting friction: change-of-use surprises extend delivery dates.
• Equipment delays: long-lead MEP gear and line components.
• Process changes: tenants iterate; build flexible power, air, and data trunks.
• Insurance and life-safety: align early on storage and testing profiles.

90-day action plan

• Week 1-2: Run a building capability audit (power, slab, docks, MEP zones, fiber) and create a one-pager.
• Week 3-4: Pre-negotiate utility upgrade pathways and timeline expectations with providers.
• Week 5-6: Pre-design modular TI packages for assembly/lab with pricing bands and lead times.
• Week 7-8: Build a permitting checklist for R&D-to-production moves with your jurisdiction.
• Week 9-12: Target robotics prospects with the audit, TI menu, and delivery schedule-offer phased possession.

Helpful resources

• AI for Real Estate & Construction - planning, analytics, and facility strategy for teams serving industrial and robotics tenants.
• AI for Operations - insights on production, logistics, and line optimization that affect site design and leasing terms.

The bottom line: robotics companies on the Peninsula are graduating from prototypes to production. If your buildings and deal structures support that shift, you'll capture bigger footprints, longer terms, and real stickiness.