Despite the recent media frenzy surrounding Facebook, the company is continuing its growth exponentially in the Bay Area, signaling that its business is healthy and its executives quite optimistic about its future. In another first for Silicon Valley, Facebook has just leased one of the buildings in Mountain View at The Village at San Antonio Station from WeWork, according to Facebook’s Corporate Communications Manager, Jamil Walker. The company is taking the building located at 401 San Antonio Road. As was first reported by The Registry, WeWork’s enterprise group took the entire project over from LinkedIn in October of 2017.
“We have secured temporary office space at The Village at San Antonio Center in Mountain View, CA, from WeWork. This new space, with its proximity to our headquarters in Menlo Park, will support part of our growing workforce,” confirmed Walker in an email.
According to sources with knowledge of the deal, WeWork has 17-year term at the property, 12 of which are guaranteed by Microsoft, LinkedIn’s parent. The Facebook deal is an 8-year deal, which the social media company has an option to cancel after year 5. The deal that Facebook is requesting includes a plan to bring as many as 5,000 employees to the location, which would provide around 45 square feet per employee.
This a second large expansion for the company in the region in as many months. In March 2018, Facebook leased three of five buildings, located at 1111 Lockheed Martin Way in Sunnyvale, from San Francisco-based developer Jay Paul at its Moffett Towers II project in the Silicon Valley city. Each building is around 350,000 square feet, putting Facebook’s lease at over one million square feet. Seattle-based Amazon took the other two buildings in the complex.
The Village at San Antonio Station is a mixed-use development in Mountain View that sits on the southeast side of San Antonio Road just north of El Camino Real. The project is part of a 56-acre development that includes residential buildings, retail, hospitality and office properties. The two, six-story buildings offer a total of 456,760 rentable square feet with a potential to expand to 556,000 square feet in the future. The entire development offers over 20 restaurants, a 330-unit Carmel the Village apartments and a 168-room Hyatt Centric Village Hotel and Conference Center. The complex also has an eight-screen cinema, as well as two 24-hour fitness centers.
680 additional residential units are under construction in the area, as well as over 300 units planned across California Ave.
The proximity of the development to other corporate users offers some indication of the buildings’ overall opportunity. Google has a property just blocks away from the development, and the Stanford Research Park is just minutes to the north on El Camino Real.
At the time The Registry reported the sublease from LinkedIn, WeWork was in talks with several companies to take over the space.
Many in the industry still refer to WeWork as a co-working space company, but over the last several years, the company has really transformed into a global landlord and property management firm. Just last month, WeWork leased an entire building in San Francisco, a first for the city. The company leased the entire Union Bank Building at 430 California Street in San Francisco, or roughly 250,000 square feet of the 22-story building. WeWork has leased the building for an 18-year term and is scheduled to move into the building in the first quarter of 2019.
WeWork Enterprise is a distinct operating unit at WeWork that focuses on corporate end users and touts office solutions for teams of any size. The company says that using WeWork will provide its corporate customers convenience—no long-term leases, although recent reports are seeing WeWork working toward multi-year agreements with corporate tenants—as well as significant operational cost savings. WeWork says its Enterprise service should cost tenants 25 percent less than a typical office lease. The company is looking to take on administrative expenses, office amenities, cleaning & maintenance, design & construction and rent expenses for their tenants. The service, called Custom Builds, offers to make this a possibility for “a handful of offices, a floor, or even a whole building.”
A similar deal occurred in Vancouver, BC, where WeWork took over 76,000 square feet in the city’s Bentall III property, a 492,000 square foot, 32-story building, according to a report from the Financial Post from early October of 2017. According to the report, Amazon is planning to take 147,000 square feet in a new building developed by Oxford Properties in downtown Vancouver located at 401 W. Georgia St. This would double the company’s presence in the Western Canadian city, however since that property will not be ready for a couple of years, Amazon signed a deal with WeWork for two years at Bentall III. WeWork was able to secure additional 53,000 square feet at Bentall II, another building part of the Bentall Centre, a complex of four Class A buildings located at the center of downtown Vancouver’s business district.
According to Chinese-based Mingtiandi, WeWork also leased four floors in Swire Properties’ Taikoo Shing on Hong Kong island earlier this month. This was followed by a November 2017 takeover of an entire Class A office building in downtown Shanghai in the China Overseas International Center near Xintiandi.