By Meghan Hall
The Silicon Valley office market, like other urban markets, has lagged behind in recovering from the coronavirus pandemic. However, a silver lining is to be found in major companies still growing rapidly. According to a first quarter report released by Colliers, Amazon has leased an additional 173,200 square feet in Santa Clara, making the deal the largest non-renewal lease expansion of the quarter.
Located at 3075 Olcott Street, the building totals 259,234 square feet. With Amazon’s expansion, the e-commerce giant now fully occupies the asset. The office property is also known as “Thirty75 Tech” and was completed in 2021 by MDY Properties Inc. Cushman & Wakefield was marketing the asset for lease on behalf of the owner.
A marketing brochure obtained by The Registry states that the building features a “striking” design with two-story lobby, floor-to-ceiling glass curtain wall and large floor plates. Tenants also have access to a fourth floor sports court and a fifth floor tenant balcony, complete with bar and seating.
“With an inspired design and distinct architectural features, Thirty75 Tech offers modern light-filled workspaces,” the brochure states. “A highly efficient design and flexible floor plates provide users a variety of office space choices.”
Amazon originally leased part of the building, with architecture by Verse Design, last fall.
Amazon’s lease was one of about 2.6 million square feet of non-renewal office leases completed during the first quarter, an increase of 45.8 percent year-over-year, according to Colliers. Colliers qualifies, however, that much of this activity is not “new-new,” so to speak, and is mostly the result of pre-leased construction projects and recent deliveries.
“The Silicon Valley office market is still materializing the backlog of demand seen before the pandemic. Net absorption remained positive for the second consecutive quarter with the market expanding by more than 1.1 million square feet,” the report explains.
Other significant deals closed this quarter include Procept BioRobotics’ lease of 158,200 square feet at 150-160 Baytech Drive in San Jose, FoxConn’s new lease of 118,500 square feet at 1768 Automation Parkway, and ServiceNow’s renewal for 130,400 square feet at 2251 Lawson Lane, in Sunnyvale.
