By Meghan Hall
Amazon Web Services (AWS), the cloud computing subsidiary of e-commerce giant Amazon, has signed a new lease in Santa Clara. The new lease is part of a broader shift of employees throughout the region following the relative success of work from home orders.
AWS intends to take 85,000 square feet at 3075 Olcott Street, according to industry sources. The building has been dubbed Thirty75 Tech and was developed by MDY Properties, Inc. The Class A office building totals 260,000 square feet of space and features an expansive two-story lobby, floor-to-ceiling glass curtain wall, sports court, and fifth floor exterior tenant balcony with bar and collaborative seating.
“With an inspired design and distinct architectural features, Thirty75 Tech offers modern light-filled workspaces,” state marketing documents for the property. “A highly efficient design and flexible floor plates provide users a variety of office space choices.”
The property also features a five-story parking garage, and is easily access via Highway 101 and the San Tomas Expressway. The development was designed by Verse Design LA. The general contractor for the project is Truebeck Construction.
The asset has been marketed for lease by Cushman & Wakefield.
A number of other major employers are located within the immediate vicinity, including Applied Materials, Intel, ServiceNow and Roche. A shopping center anchored by a Whole Foods is located just up the street. The UCSC Silicon Valley Extension, Fleming’s Prime Steakhouse and Gong Cha are also located nearby.
The lease comes as AWS prepares to leave behind 90,000 square feet of space in East Palo Alto in July. The efforts are part of a broader strategy to consolidate offices and operations as a result of employees working from home, according to industry reporting.
Through the first quarter of 2021, leasing activity remained historically low. Total gross absorption at the end of Q1 came to 455,000 square feet in Silicon Valley, less than half of what was recorded in the third and fourth quarter of 2020. Net absorption finished in the red, at a negative 300,000 square feet in the first quarter. Data released by Cushman and Wakefield this month indicates that the Santa Clara market—where AWS signed its most recent lease—as one of the highest vacancy rates in Silicon Valley. Currently, vacancy sits at 23.8 percent, and asking rents come in at about $4.23 per square foot.