By Meghan Hall
Major international and local technology companies are continuing to show their commitment to Sunnyvale, Calif. Software and cybersecurity company Proofpoint Inc. added to the growing list of tech businesses to take up space at Irvine Co.’s massive office development at Pathline Park in Sunnyvale. Proofpoint plans to lease 242,000 square feet of space at 625 Mary Ave. and 925 W. Maude Ave. beginning in 2020 when the two three-story buildings are completed, and will make the offices their new headquarters.
Proofpoint plans to lease the buildings for 127 months, or about 10-and-a-half years. The company is expected to spend $161.3 million on the space throughout the lease’s duration. According to documents referenced by the Business Journal, the buildings will become Proofpoint’s new headquarters. The company is currently based in Sunnyvale, and leases 121,000 square feet of space along Ross Drive.
“We are thrilled that such an innovative and respected firm as Proofpoint has chosen Pathline Park for their new headquarters,” said Todd Hedrick, a regional vice president at Irvine Company, in a press release at the beginning of November. “Planning and building Pathline Park from the ground up provides an unprecedented opportunity to leverage our deep research into the needs and desires of forward-thinking companies and their employees to create the workplace community of the future.”
When completed, the Pathline Park development will include 1.3 million square feet of commercial office space spread over 11 buildings. Amenities in the business park include what Irvine Company calls KINETIC, a state-of-the-art fitness center, and a large open air lounge space called The Commons, which will be equipped with wifi. Proofpoint will join other major companies who have leased space at Pathline Park and in the greater Peery Park area. Mountain View-based Synopsys Inc., a computer systems design company, formalized its negotiations for around 350,000 square feet of space across three buildings at the campus during the first quarter of 2018, meaning more than half of the available inventory at Pathline Park has now been pre-leased. Finnish telecommunications firm Nokia Corporation signed a 231,000 square foot lease for 520 Almanor Ave. in Peery Park in September 2018 from developer Lane Partners.
The campus will be designed by Miami-based Arquitectonica, and the buildings will feature floor-to-ceiling windows and a modern exterior. A modern art walk and the inclusion of redwood trees and local plans intends to connect the campus’ occupants to the outdoors.
“Unique amenities within each of the three distinct campus neighborhoods will create new places for employees and visitors to explore,” said Hedrick.
Pathline Park is conveniently situated at the junction of U.S. State Route 101 and California State Route 237. The office park is part of the greater Peery Park Specific Plan, which will guide the redevelopment of the 450-acres in the northern half of Sunnyvale and is expected to create more than two million square feet of office space in the coming years. The area is a hotbed for major technology companies as well; Apple, Google and LinkedIn are all located nearby.
According to Colliers International’s 2018 Q2 Silicon Valley Report, sustained, strong leasing activity in Silicon Valley will continue. Sunnyvale’s commercial office vacancy rate continues to hover around three percent. Mountain View and Santa Clara, who neighbor Sunnyvale, have vacancy rates of 8.2 percent and 18.8 percent, respectively.
As of this writing, Proofpoint had not yet returned The Registry’s request for comment.