Federal Realty Investment Trust will start today the construction on 700 Santana Row, a 284,000 square-foot office building in one of Silicon Valley’s most recognized mixed-use neighborhoods in San Jose. The building will feature an eight-story structure with 30,000 and 48,000 square-foot floor plates built with concrete construction, which will give the building distinctive design qualities not often seen in traditional Silicon Valley office buildings. The total, all-in cost of the project, including development, land, construction and tenant improvements is expected to be between $205 and $215 million, and Devcon Construction is the general contractor.
“We’ve designed the building with a concrete structure and loft-like feel more often found in San Francisco’s SOMA district and other urban centers. 700 Santana Row will feature expansive natural light with tall, market-leading 13-foot ceilings and open floor plans, which in turn will provide companies with high-productivity, collaborative workspaces for their employees,” said Jan Sweetnam, Federal Realty’s Western Region chief operating officer.
700 Santana Row is following in the footsteps of another office development that Federal Realty is in the process of finalizing, 500 Santana Row, a six-story, 234,500 square foot, Class-A office building on an adjacent site fully-leased to Splunk, Inc. The tech firm is moving into the building next month.
The Splunk announcement occurred about 10 months into the construction of 500 Santana Row, and similar to that development, 700 Santana Row will also begin on a speculative basis. “We still have very strong interest for office in Santana Row, and we are currently at 100 percent occupancy,” said Sweetnam. “The Splunk interest happened a little sooner than we thought, we have some interest [for 700 Santana Row], but no significant announcement until we’re well into 2017.”
Sweetnam also added that with the 500 Santana Row development the firm was keen on leasing it to one tenant, while they expect several tenants to likely occupy the new structure. The floor plates lend themselves well to tenants looking to occupy one to three floors, and the demand for that size space is still pretty strong, he said.
And while the fast absorption of the office complex next door did give the developer an incentive to get started on the next building as quickly as possible, the final approvals for the new development were not finalized until recently and Federal Realty wanted to complete construction of a garage that would provide additional parking and staging area during the construction of the new development.
Ready for tenant build-out in the third quarter of 2018, 700 Santana Row will also feature a three-per-thousand dedicated parking ratio and a 15,000 square-foot roof-top terrace and garden with majestic views of Santana Row, the San Jose skyline and distant foothills. Shuttle service will take Santana Row office tenants to nearby Diridon Station for Caltrain and VTA light rail service, according to a prepared statement.
“And unlike the congested 101 corridor,” Sweetnam added, “Santana Row is located directly off of Interstate 280 in close proximity to residential neighborhoods and office parks in San Jose, Palo Alto, Mountain View, Sunnyvale, Cupertino, Santa Clara, and throughout Silicon Valley.”
“The on-site amenities and walkable environment that Santana Row offers has become a recruiting and retention tool for Splunk, Experian, Si-Bone and the other companies located here,” said Jeff Berkes, President-West Coast for Federal Realty Investment Trust.
Newmark Cornish & Carey is the leasing agent for the project led by Randy Gabrielson, Todd Shaffer and Tracey Solari. 700 Santana Row has been designed by WRNS Studio of San Francisco.