Oracle is joining a number of companies that have already announced subleases on the heels of the changing workforce demands and an economic outlook that has forced them to lay off workers. Oracle, which has also recently announced its intentions to relocate its headquarters from the Bay Area to Texas, is putting on the sublease market a 185,700-square-foot building it occupies in Pleasanton located at 5805 Owens Dr.
The property, building G as it is known and which is owned by Oracle, is five stories tall, and each floor is 37,140 square feet in size, according to the building listing on LoopNet. Some features and amenities in the building include 24-hour access, an on-site property manager, a car charging station and an opportunity for signage on the building. This property is considered a Class A property. It was developed in 2003 and it also provides 150 surface parking spaces.
5805 Owens Dr. is also close to the Dublin Pleasanton BART Station and a little further out from the Pleasanton and Livermore commuter rail stations.
The office market across the greater Bay Area has been deeply affected over the last couple of years as companies are evaluating their office footprint needs. Oracle is just one of several technology firms that have placed properties on the market for sublease following the economic and societal changes surrounding workplace strategies since the onset of the global COVID-19 pandemic.
The Registry reported in September that San Francisco-based Okta, an identity management firm, is putting roughly 60,000 square feet it occupies in downtown San Jose on the sublease market. That news came on the same day as Airbnb was placing roughly 450,000 square feet on the sublease market in San Francisco and Santa Clara. Earlier this year, the company’s CEO Brian Chesky announced that its employees will have the flexibility to work from anywhere, including up to three months overseas. The company also abolished location-based pay within the U.S. and saw the recruiting page receive over one million applications following the announcement.
“I think that the office as we know it is over. It’s kind of like an anachronistic form. It’s from a pre-digital age. If the office didn’t exist, I like to ask, would we invent it? And if we invented it, what would it be invented for,” he asked during an interview with Time Magazine in May of this year.
Prior to those two properties hitting the sublease market, San Francisco-based Lyft announced its plans to reduce its office leases in four cities by about 45 percent of the total 615,000 square feet it leases. The reduction in office space will be made in its hometown San Francisco and also in New York, Seattle and Nashville. The Registry also reported that Netlifx was placing 164,000 square feet across two buildings on the sublease market in Los Gatos. In February, Slack put 208,460 square feet of space on the sublease market in San Francisco. Zynga placed 185,000 square feet in San Francisco on the sublease market about a year ago and Airbnb added 300,000 square feet to the sublease tally in July of 2021. In July of 2022, Twitter announced that it would not occupy the 66,000 square foot lease in Oakland it signed with TMG Partners and KKR at 1330 Broadway while trimming its offices in San Francisco and also around the globe in Europe and Asia. Even the fabled venture capital firm Andreessen Horowitz announced that it was moving its headquarters to the cloud.
“It turns out that running a technology company remotely works pretty darned well,” Horowitz stated in his blog post speaking about his firm’s decision and the general trends of distributed work.