By Meghan Hall
The Bay Area’s commercial real estate market had an active fourth quarter, as the technology sector continued to surge ahead pushing demand for office space in Silicon Valley to new heights. The largest of those deals, according to a fourth quarter Silicon Valley office report released by Colliers International last week, was one secured by LinkedIn. The networking platform agreed to lease 410,674 square feet of space at 445-465 N. Mary Ave. in Sunnyvale at an office complex owned by San Francisco-based developer Jay Paul Co. The lease helped push leasing activity in the fourth quarter to 2.4 million square feet.
Currently, the largest of the three buildings at the Sunnyvale campus is entitled, while the other two are currently occupied by Silicon IP company Synopsys, who is based out of Mountain View, Calif. The 8.8-acre North Mary campus is comprised of Class A office space. The two prior buildings were completed in 11 months, according to Jay Paul’s site, and 465 Mary, the third building, will be a 173,000 square foot, 4-story building added to the south-east corner of the site.
LinkedIn will move into the two existing buildings at 445 and 455 North Mary Ave. during the second half of 2020, according to the Silicon Valley Business Journal. The technology company will begin leasing the third building, located at 465 N. Mary Ave., beginning in 2022. LinkedIn is expected to lease the property for about 12 years. Synopsys is slated to lease 360,000 square feet at the 50-acre Pathline Park Development, which is expected to be delivered next year.
In addition, LinkedIn also received approval from the City of Mountain View to build their new 1.05 million square foot headquarters at 700 Middlefield Rd., just up the street from the new Sunnyvale lease, strengthening LinkedIn’s commitment to the area. According to Colliers, companies’ interest in Silicon Valley won’t wane anytime soon. Proofpoint executed the second largest office lease of the quarter, securing 242,000 square feet for Phase 3 of Irvine’s Pathline development, which is currently entitled. In addition, 23andMe’s 155,000 square foot headquarters at 221 N. Mathilda Ave. in Sunnyvale, and a 95,000 square foot office at 599 Castro St. in Mountain View — preleased to Pure Storage and Sobrato — were completed. Looking into 2019, companies will continue to grow regionally with the expectation of establishing amenity-rich campuses throughout the Bay Area, said Colliers, and demand will remain strong.