Mannington Mills will use the leasehold for a new West Coast distribution center that combines the distribution operations of subsidiary Burke Industries, which will be vacating another building in San Jose, and some of Mannington's West Coast-related distribution operations in North Carolina. Occupancy is expected in the first quarter. Mannington's broker, Ed Hofer of Colliers International, was not immediately available Wednesday for comment.

The lease, one of he largest in the Silicon Valley this year, soaks up all the available space in the 197,000-square-foot AMB Acer Distribution Center. AMB's owns and/or manages about 11 million square feet in the Bay Area. AMB's average annualized base rent for active leases in the entire San Francisco Bay Area is $6.67, which equates to $0.55 per square foot per month. The current average asking rate for warehouse space in San Jose and Santa Clara markets is in the low-to-mid $0.40s per square foot per month, according to Cornish & Carey Commercial.

Ed Hofer and Mark Zamudio of Colliers International represented Mannington Mills. Jim Kovaleski and Craig Kovaleski of NAI BT Commercial, and Hofer and Zamudio represented AMB in this transaction.