By Meghan Hall
Aurora, a self-driving vehicle company currently based in Palo Alto, Calif., has inked a new 110,000 square foot lease in Mountain View. The lease is for an office and research building at 280 N. Bernardo Ave. according to The Mercury News, who first reported the transaction.
Cushman & Wakefield brokers Greg Pickett, Kalil Jenab and Nick Lazzarini helped to arrange the lease.
The Mountain View office is owned by Palo Alto-based Sand Hill Property Company, and is located within a hub of offices whose tenants include Panasonic, Honda, Allied Laboratories and Toyota. The office is right off of State Route 237, and numerous other residential apartment complexes, such as the Balboa and El Mirador Apartments, are within walking distance.
Aurora was founded in 2016, and is now home to more than 250 employees, with the firm’s other two offices based in San Francisco and Pittsburgh. As of May of this year, Aurora had raised more than $600 million from investors such as Sequoia and Amazon in its latest round of funding, with plans to invest further in its technology and plan for company expansion.
According to a second quarter office report recently released by Cushman & Wakefield, office leasing in Silicon Valley picked up speed compared with the first quarter of the year. In Q2, five of the eight top transactions were over 100,000 square feet, whereas in the first quarter, there were only two leases that were more than 100,000 square feet. The recent Aurora lease continues to build upon the momentum of the second quarter, which Cushman & Wakefield predicts will continue throughout the rest of the year. Mountain View’s office vacancy rate is currently around 8.4 percent, and the market has approximately 5.2 million square feet of inventory. Comparatively, Cupertino has the lowest office vacancy rate in Silicon Valley, at 3.4 percent, while Campbell has the highest, at 20.7 percent. The average asking rent in Mountain View is higher than many other Silicon Valley submarkets, at $7.60 per square foot full service gross.
As optimism for tech-driven real estate remains high, Cushman & Wakefield believes the Mountain View office market — and Silicon Valley’s at large — will remain healthy, and tenant demand will contribute to positive absorption in the second half of 2019.