The hackers at Facebook are growing too fast for the region. In a report by the Silicon Valley Business Journal, the social media giant is taking another 100,000 square feet of space in an R&D building located at 220 Jefferson Dr. in Menlo Park, a lab building that was once occupied by Oracle. The owner of the property is the San Mateo-based Bohannon Company.
The property is surrounded by other Facebook buildings, so this new lease is not a very big surprise. The building is also just blocks away from Bohannon’s Menlo Gateway project, a massive mixed-use development that at completion will feature approximately 773,000 square feet of office space all pre-leased to Facebook.
As The Registry reported in November of 2017, Alexandria Real Estate Equities invested $78 million into the Menlo Gateway development. The investment that Alexandria completed gives the company an 18 percent equity share in the development at present. It spent $60 million to acquire that equity and another $18 million in debt for a total of $78 million. The company plans to achieve a 49-percent equity share in the development by the first quarter of 2019, when its total investment will reach $430 million ($282 million for the equity and $148 million in debt). The debt portion would be for non-recourse construction financing for phase two of the development.
Just like its neighbor Google to the south, so too is Facebook aware of the challenges posed by limited commercial real estate availability in the region. In its efforts to maintain a strong presence in the region, Facebook also leased 190,000 square feet of space in Fremont in December of 2017, across the Bay and just minutes away via the Dumbarton Bridge.
The Fremont properties are located at 6530 Paseo Padre Parkway and 6422 Commerce Drive. The Paseo Padre building is 100,000 square feet, while the Commerce Drive building is 90,000 square feet. The landlord in those properties is the Sobrato Organization, which had also leased 270,000 square feet to Facebook in two buildings it owns at 162-164 Jefferson Dr. in Menlo Park.
But perhaps the most impressive lease Facebook took recently was the 432,000 square feet at 181 Fremont Street in San Francisco from developer Jay Paul. The new, mixed-use, 70-story tower that features commercial office space and 67 condominium residences on the top 17 floors of the building marks a significant expansion for the social networking company as it continues to grow its physical footprint across the region.