Google Buys Three San Jose Office Buildings from Cisco for $123MM

By Meghan Hall

Google’s investment in the South Bay city of San Jose continues to surge, with the tech giant seeming to snap up any available property for its rapidly growing workforce. In a transaction that closed yesterday, Google has agreed to buy three office buildings along W. Tasman Drive from San Jose-based Cisco Systems, The Mercury News has reported. Google acquired the three buildings for $123 million, and according to public documents, Google’s plans to buy a fourth building from Cisco are already in the works.

The three buildings that Google has acquired are located at 175, 255 and 285 W. Tasman Drive, with the fourth asset sitting adjacent to the other three. Included in the transaction was also a multi-level parking garage. In all, the buildings sit atop nearly 25 acres. Built in 1996, the four buildings total more than 550,000 square feet and could accommodate nearly 3,000 employees.  

The buildings are not only part of Cisco’s current headquarters, but are also just up W. Tasman Drive from Samsung Electronics, who occupies more than one million square feet at its headquarters on a 9-acre site. Cypress Semiconductor is also nearby, and the property is located just a few minutes south of the Alviso neighborhood of San Jose, where many technology firms have set up shop along North First Street.

Google’s holdings in San Jose have become vast in recent years through not just sizeable property transactions, but also leases. On North First Street, Google has leased 729,000 square feet from Peery Arrillaga. In August of this year, Google purchased 56 properties near Diridon Station for $191.5 million, and in May it acquired another three buildings in North San Jose for $137.5 million.

West Coast Commercial Real Estate News