By Meghan Hall
A10 Networks is expanding within its hometown of San Jose, keeping both corporate office and research and development operations close. According to the company’s second quarter report, released August 2nd, the technology firm has subleased 116,000 square feet of space from Santa Clara, Calif.-based Marvell Semiconductor, Inc., at 2300 Orchard Parkway.
Documents indicate that the term of the lease is seven years and eight months from the date the A10 Networks begins business operations on the premises. The sublease, while signed in May of this year, is expected to commence in December 2019. Base rent will be $262,000 per month for the first year, with annual increases expected after. Total base rent through the entire sublease is expected to come in at $26.4 million. A10 Networks will also be responsible for operating and other expenses.
The exterior of the building includes charcoal aluminum panel siding, a painted steel canopy and two-story glass curtainwall. Concrete floors and pendant lighting can be found throughout, and a reception desk with a wood-slat feature wall serves as a focal point for the space. The all-hands area also includes banquette seating framed by soffits. The property also features a large outdoor amenity space with steel and wood arbor, large glass garage doors and a break and fitness area.
China-based Hans Holdings owns the building, which it purchased from Brookfield Property Group for $48.5 million in August of 2017. At the time of the transaction, San Jose-based Cavium was expected to move into 2300 Orchard. The original lease term was ten years. However, the semiconductor company was purchased by Marvell in July 2018 for $6 billion. Marvell has also put Cavium’s two other properties in San Jose up for lease: 2315 N. First St. and 2345 N. First St.
Currently, A10 Networks is headquartered at 3 W. Plumeria Dr., also in San Jose. The building’s office footprint totals about 80,000 square feet.
2300 Orchard is located in the southern portion of North San Jose, just off of State Route 101 and minutes from San Jose International Airport. Numerous other technology companies, such as PayPal, Lattice Semiconductor and eBay are also located within the vicinity. North San Jose, and specifically the Orchard Parkway submarket, has seen increasing tenant and investor interest over the years. In March, Sierra Investments bought the Orchard Corporate Center from South Bay Development for $47.8 million. In 2017, Orchard Commons, a 315,000 square foot office development, was sold for $105 million by Menlo Park-based Lane Partners.