Applied Materials, a global tech company, is expanding its presence in its home city of Santa Clara. The company has added 246,000 square feet of office space with a recent lease, according to reports from The Real Deal.
The company will take an entire building at 3333 Scott Boulevard. The building stands six stories high and was previously occupied by Hewlett Packard Enterprise company Aruba Networks, which subleased the space to Applied Materials.
The sublease adds to Applied Materials growth in Santa Clara, with an additional building occupied by the company located directly across the street. Several other corporate office buildings occupied by Applied Materials are also located within a short drive from the property.
Applied Materials has been growing in Silicon Valley for quite some time. In February, the company also subleased a 122,000 square-foot office building at 3325 Scott Boulevard from Palo Alto Networks.
In the past year, the company has also expanded across Sunnyvale with several purchases, including its most recent acquisition of a research and development asset at 545 Oakmead. The property was acquired for $46.6 million, or about $405 per square foot.
In general, tech companies have carried much of Silicon Valley’s office market. According to a recent first quarter office market report from Newmark, Silicon Valley saw its second consecutive quarter of positive net absorption at 1.75 million square feet. This was largely due to tech companies in the market. During the first quarter, Google completed its 1.1 million square-foot Bay View Campus. LinkedIn also completed its South Middlefield campus which totals more than 1 million square feet. However, the report shows that even without the completion of these projects, Silicon Valley’s office market is kicking the year off on a good note, with gross leasing growing by nearly 300 percent year-over-year.