CPS Technologies (NASDAQ: CPSH) plans 2027 move to new Attleboro plant
Rhea-AI Filing Summary
CPS Technologies Corp. (CPSH) entered into a long‑term lease with VMD Industrial II, LLC for approximately 80,000 rentable square feet at 523 Pleasant Street, Attleboro, Massachusetts, and plans to relocate its corporate offices, manufacturing and product development from Norton, Massachusetts to this site during 2027.
The lease term is twelve years and ten months from August 19, 2026, with a ten‑month construction period through May 31, 2027 and a six‑month base‑rent‑free period through November 30, 2027. Base rent starts December 1, 2027 at $85,000 per month for six months, then about $1.05 million for the next lease year, increasing 3% annually. CPS Technologies pays 47.20% of real estate taxes, operating costs and insurance, plus utilities. The landlord will contribute up to $3.2 million toward qualifying improvements after the company spends at least $1.6 million, and CPS Technologies must post a $510,000 security deposit, potentially reducible to $255,000. The lease includes two five‑year extension options, fair‑market starting rent (at least 103% of the prior lease year) with 3% annual increases, and a right of first offer on adjacent space.
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8-K Event Classification
2 items: 1.01, 9.01
2 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Premises size: 80,000 rentable square feet
Initial lease term: Twelve years and ten months
Initial base rent: $85,000 per month
+5 more
8 metrics
Premises size
80,000 rentable square feet
Space leased at 523 Pleasant Street, Attleboro, Massachusetts
Initial lease term
Twelve years and ten months
Lease term commencing August 19, 2026
Initial base rent
$85,000 per month
First six months of paid base rent starting December 1, 2027
Base rent following lease year
Approximately $1.05 million
Base rent for the lease year after the initial six‑month paid period
Annual base rent increase
3% annually
Base rent escalation after the first full lease year
Operating cost share
47.20%
Proportionate share of real estate taxes, operating costs and insurance
Landlord improvement contribution
$3.2 million
Maximum contribution toward qualifying alterations and improvements
Security deposit
$510,000
Security deposit required under the lease, reducible to $255,000
Key Terms
base rent, security deposit, fair market rent, right of first offer, +1 more
5 terms
base rent financial
"Base rent commences on December 1, 2027 at $85,000 per month"
The fixed minimum rent a tenant pays under a lease before any extra charges or variable fees; think of it as the subscription price for a space, separate from add‑ons like utilities, maintenance, or a share of property taxes. Investors watch base rent because it sets the predictable, recurring income stream that determines a property's immediate cash flow and helps value the asset, while extras and escalations affect total returns and risk.
security deposit financial
"The Company is also required to provide a security deposit of $510,000"
fair market rent financial
"Base rent for the first year of each extension term will be fair market rent"
Fair market rent is the typical monthly amount a willing tenant would pay and a willing landlord would accept for a similar property in the same area, when neither is under pressure to act. For investors it matters because it sets realistic income expectations for rental properties, influences property valuations and cash flow forecasts, and guides underwriting and tax or subsidy calculations—much like the going rate for a used car helps a seller and buyer agree on a price.
right of first offer financial
"The Company also has an ongoing right of first offer to lease available"
A right of first offer is a contractual agreement that requires an owner to offer an asset or stake to a designated party before marketing it to others; the holder gets the first chance to negotiate terms directly with the seller. For investors, it matters because it can limit who can buy or set the sale price path—like getting the first invitation to buy a sought-after item before it goes on general sale, protecting potential access or controlling competition.
FAQ
What new facility is CPSH leasing and how large is it?
CPS Technologies Corp. is leasing approximately 80,000 rentable square feet at 523 Pleasant Street, Attleboro, Massachusetts, to house its corporate offices, manufacturing operations and product development activities, which it plans to relocate from Norton, Massachusetts during 2027.
What is the lease term for CPSH’s new Attleboro facility?
The initial lease term is twelve years and ten months starting on August 19, 2026. It includes a ten‑month construction period through May 31, 2027 and a six‑month base‑rent‑free period through November 30, 2027, before paid base rent begins.
How much base rent will CPSH pay under the new lease?
Base rent begins December 1, 2027 at $85,000 per month for six months, then increases to about $1.05 million for the following lease year, and then increases by 3% annually for the remainder of the initial lease term.
What additional costs does CPSH bear besides base rent?
In addition to base rent, CPS Technologies is responsible for its 47.20% proportionate share of real estate taxes, operating costs and insurance for the property, plus utilities and certain other costs related to the premises, as described in the lease.
What landlord improvement contribution does CPSH receive in this lease?
The landlord agreed to contribute up to $3.2 million toward qualifying alterations, improvements, fixtures and equipment that become part of or are attached to the premises, after CPS Technologies first spends at least $1.6 million on its own project work.
What security deposit and extension options are included in CPSH’s lease?
CPS Technologies must provide a $510,000 security deposit, which may be reduced to $255,000 under the lease. The lease grants two five‑year extension options at fair market rent, not less than 103% of the prior lease year’s base rent, with 3% annual increases.
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