A net lease is a real estate lease in which the tenant pays some or all property expenses—such as taxes, insurance and maintenance—in addition to base rent, so the landlord receives a steadier stream of income with fewer variable costs. For investors, net leases can behave like a bond: they offer predictable, long-term cash flow and lower property-management risk, but the investor still faces vacancy, credit and market-value risks.
NEW YORK--(BUSINESS WIRE)--
Morgan Stanley Investment Management, through funds managed by Morgan Stanley Real Estate Investing (MSREI), announced today the acquisition of a premier advanced manufacturing property in Fremont, California, for $110 million, which is subject to a long-term net lease with Western Digital, a global leader in the data storage and infrastructure solutions sector.
Commenting on the transaction, Will Milam, Head of U.S. Investments at Morgan Stanley Real Estate Investing, said: “This acquisition reflects MSREI’s conviction in the Bay Area’s advanced manufacturing ecosystem and aligns with our strategy of investing in high-quality research and development assets in core innovation corridors, where demand is driven by superior infrastructure and access to top talent, and where supply remains constrained.”
Situated within the San Francisco Bay Area, this 290,000-square-foot advanced manufacturing space features high power capacity relative to market averages.
With this acquisition, MSREI acquired approximately $1.5 billion of U.S. industrial assets in 2025 bringing its U.S. industrial portfolio to more than 75 million square feet.
About Morgan Stanley Real Estate Investing
Morgan Stanley Real Estate Investing (MSREI) is the global private real estate investment management business of Morgan Stanley. One of the most active property investors in the world for over three decades, MSREI employs a patient, disciplined approach through global value-add / opportunistic and regional core / core-plus real estate investment strategies. With 17 offices throughout the U.S., Europe and Asia, regional teams of dedicated real estate professionals combine a unique global perspective with local presence and significant transaction execution expertise. MSREI currently manages $55 billion of gross real estate assets worldwide on behalf of its clients.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.9 trillion in assets under management or supervision as of December 31, 2025. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.
