Following its announcement to continue expanding its real estate foot print in San Jose, Adobe Systems just confirmed that it will need additional space in San Jose for its expanding business while the renovations at the headquarters property and its adjacent lot commence. The news of Adobe’s expansion into 65,000 square feet at 10 S. Almaden in San Jose was first reported by the Mercury News.
The building is also home to Apigee, which had leased 41,000 square feet at the building when it relocated its headquarters from Palo Alto. The property is owned by KBS Real Estate, which purchased the asset for its KBS Real Estate Investment Trust III in late 2014 for $116.7 million, or approximately $377 per square foot, from Equity Office Properties Trust.
According to the report, the lease Adobe signed at 10 S. Alamaden was for five years, and Adobe is expected to move into the property in early November. Cushman & Wakefield along with Colliers International worked on the deal.
Downtown San Jose has received an inordinate amount of attention recently, making the Silicon Valley’s most urbanized city at the forefront of recent commercial real estate news. In a span of just a couple of months Adobe and Google announced major plans for expansion in the city’s downtown core. The news seemed to coincide with another technology firm, Cohesity deciding to take 40,000 square feet at Riverpark Tower II, 300 Park Avenue, located in the heart of downtown San Jose, where it tripled its square footage after moving from Santa Clara. Two hotel deals occurred just weeks from another another (Blackstone paid $65MM to acquire the 236-room Hyatt Place San Jose Downtown, and the hospitality arm of the South Korean conglomerate Aju Group paid $64 million to buy the iconic Westin San Jose, previously known as the The Sainte Claire Hotel), AEW Capital Management purchased the 162,800 square foot 303 Almaden Blvd. property for $80.15 million and TMG Partners announced a million square foot office development with Oak Valley Partners.
All of this occurred just over a year after the city unanimously approved Apple’s 86-acre development site near the airport for 4 million square feet of office space, which now seems all but forgotten, but certainly relevant for the evolution of downtown San Jose.