By Meghan Hall
North San Jose continues to attract the interest of top-tier technology companies for expansion or relocation, as seen by McAfee’s new lease for 85,000 square feet at the America Center this week. The complex, located at 6220 America Center Dr., currently houses Hewlett Packard Enterprise Co.’s new headquarters and is owned by Foster City, Calif.-based SteelWave and San Antonio, Texas-based USAA Real Estate Company.
The deal was first reported by the Silicon Valley Business Journal.
McAfee’s current headquarters are also located not far away, at 2821 Mission College Blvd. in Santa Clara. Its headquarters are currently owned by Sobrato, and according to the Business Journal, its lease does not end until next year. The Business Journal also reported that the lease in San Jose would most likely be the location of McAfee’s new headquarters.
The building that McAfee has leased is one of two new, six-story buildings. McAfee has taken the top two floors and part of the ground floor of the building. Floorplans for the building indicate floor plates of about 36,500 square feet, and layout features include multiple copy and print rooms, a mother’s room, phone rooms and conference rooms.
The property also includes two other six-story buildings; all four buildings are more than 200,000 square feet in size. A new 21,274 square foot amenities building complete wit roof deck, putting green fitness center, yoga studio, café and bar is part of the site, and the complex’s buildings are finished out with features such as fiber optic backbone networks and Dynamic Glass automated windows. According to a brochure on the office complex’s website, the site is also entitled for an additional fifth, 200,000 square foot building.
Two hotels — a Residence Inn and Fairfield Inn & Suites by Marriott—are under construction. When complete, the hotels will total 261 rooms. The property is easily accessible via State Route 237, and is ten minutes to San Jose International Airport and Oracle Arena, current home of the Golden State Warriors.
Because of its potential to house larger, newer office developments, North San Jose has become a popular destination for companies looking to expand their footprint in Silicon Valley. According to CBRE’s First Quarter Silicon Valley Office Report, technology-based tenants such as McAfee accounted for the highest percentage of active office users in the market, with 65 percent of leasing activity generated by such companies.
Some of these companies include Netherlands-based ASML recently signed a 265,000 square foot lease across three DivcoWest Buildings at the beginning of April, while in June of 2018 Boise, Idaho-based Micron Technology inked a 561,000 square foot lease at Lane Partners-owned HQ @first.
Despite the number of large leases, however, North San Jose has an office vacancy rate of 15.1 percent, much higher than more space-constrained markets such as Sunnyvale, whose vacancy rate hovers at around 1.3 percent. CBRE predicts that the rest of 2019 looks positive for North San Jose and Silicon Valley, as new projects are delivered and high tenant demand continues.