Apple, Google and LinkedIn have long been a presence in Sunnyvale, the South Bay city with the Midas touch when it comes to attracting the tech industry’s elite.
Development-friendly regulations, the resulting collection of appealing new office complexes and a location not far from existing tech strongholds are all factors that have helped place Sunnyvale at the epicenter of a tech expansion boom.
This week, Newport Beach-based Irvine Company announced its expansion plans in the city with the acquisition of computer chip maker AMD’s campus in Sunnyvale, a 319,000 square foot complex located at 1090 E Duane Ave. on 32.5 acres, for $175 million, or roughly $548 per square foot. Irvine Company’s representative confirmed the sale, but pointed to the public documents for the price.
Irvine has not disclosed any plans at this moment about what it plans to do with the site and the company is presently evaluating possibilities. “We are currently exploring the best use for the property and haven’t made any final decisions,” said Carlene Matchniff, Irvine Company’s vice president of entitlement and public affairs in an email statement provided to The Registry.
The seller of the property was New York-based W. P. Carey, a global net-lease REIT that provides long-term sale-leaseback and build-to-suit financing solutions for companies worldwide. It had owned the Sunnyvale location since 1995, when it purchased it for $95 million, or nearly $298 per square foot.
According to the most recent Silicon Valley Research & Forecast Report published for the first quarter of 2016 by Colliers International, there is more than 6.5 million square feet of office space under construction in Silicon Valley, with total potential development reaching more than 53 million square feet in the form of proposed developments. New completions recorded during the first quarter include office towers pre-leased by Google at Moffett Place in Sunnyvale, a six building campus that will top out at 1.9 million square feet once fully complete in 2019. Just weeks ago, Google pre-leased another 612,000 square feet from Jay Paul’s Moffett Gateway project, also in Sunnyvale. The city boasts the lowest Class A office availability in Silicon Valley at 3.3 percent, according to Colliers, at an average asking rent of $4.45 across all product types.