By Meghan Hall
Santa Clara has long been at the forefront of office development as major technology companies like Amazon and Google have expanded their presence in the Silicon Valley submarket and large projects such as Related California’s CityPlace — which will bring 5.7 million square feet of office space to the area — add to the current wave of development. In a recent transaction, Princeton Investment Group has sold 2900 Lakeside Drive in Santa Clara to CS Lakeside Santa Clara, an entity associated with Irvine-based Stratus Development, public documents show. The sale, which occurred in mid-May of 2018, indicates that the 36,287 square foot property was sold for $17.2 million, or approximately $474 per square foot.
The two story office building is located right next to U.S. Route 101 and is about a 15-minute drive to downtown Santa Clara. Santa Clara Square, a mixed-use development by the Irvine Company, is just an eight minute walk away. Levi’s Stadium, the home of the San Francisco 49ers, Mission College and California’s Great America are located just on the other side of the highway. 2900 Lakeside is immediately surrounded by other office buildings, where companies such as technology company Aruba and Realtor.com are located.
According to CBRE’s Silicon Valley website, the building contains Class C office space and was originally constructed in 1983.
Santa Clara had the highest commercial office availability rates at the end of the second quarter of 2018, according to Colliers International’s 2018 Q2 Silicon Valley Report. Santa Clara reported an office availability rate of 18.8 percent, while neighboring Sunnyvale reported a rate of just 3.1 percent. According to a Cushman & Wakefield Report released after the second quarter of 2018, the vacancy rate within Santa Clara is a tad higher, at 21.2 percent. There is just over 10 million square feet of available office inventory in Santa Clara, and an additional 200,000 square feet is currently under construction.
However, the Santa Clara office rental market still remains strong and attracts top technology, finance and biomedical companies. Verb Surgical, a digital surgery platform backed by Google and Johnson & Johnson, secured 234,096 square feet of space at Stadium Tech Center.
CS Lakeside Santa Clara did not immediately return The Registry’s request for comment.