CPS Technologies Corp Announces 80,000 sq ft Lease in Attleboro

What Happened

• CPS Technologies Corp announced it entered into a Lease Agreement dated August 19, 2026 with VMD Industrial II, LLC for approximately 80,000 rentable square feet at 523 Pleasant Street, Attleboro, Massachusetts. The company plans to relocate its corporate offices, manufacturing and product development from Norton, MA to the new premises during 2027.
• The initial lease term is 12 years and 10 months beginning on the lease Effective Date. There is a 10-month construction period through May 31, 2027, followed by a six-month base-rent-free period through November 30, 2027; base rent begins December 1, 2027.

Key Details

• Base rent: $85,000 per month for the first six months after rent commencement (Dec 1, 2027), then approximately $1.05 million for the following lease year; base rent increases 3% annually thereafter.
• Tenant costs: CPS is responsible for 47.20% of real estate taxes, operating costs and insurance for the property, plus utilities and certain other Premises-related costs.
• Landlord contribution: Up to $3.2 million toward qualifying tenant improvements, fixtures and equipment, conditioned on CPS first spending at least $1.6 million on the work.
• Other terms: Security deposit of $510,000 (may be reduced to $255,000 per lease terms); two five-year renewal options (first-year extension rent = fair market rent but not less than 103% of prior year); right of first offer on adjacent available space. The premises are about eight miles from CPS’s current facility.

Why It Matters

• This is a material real estate commitment that centralizes CPS’s operations (corporate, manufacturing, R&D) into a single larger facility, with relocation expected in 2027. That consolidation could affect operating logistics and future capacity.
• The lease creates a long-term fixed occupancy obligation with rising base rent and a significant share of property-related expenses, which will influence CPS’s ongoing cash flow and operating expense profile. The landlord’s up-to-$3.2M tenant improvement allowance, which requires CPS to pre-fund $1.6M, will affect near-term capital spending and cash deployment.