By Meghan Hall
ServiceNow, a cloud-based digital workflow company, is continuing to expand its presence in its hometown of Santa Clara, where the firm is also headquartered. The company recently inked a lease for 130,000 square feet of space at 2251 Lawson Lane, according to the Mercury News who first reported the transaction last week.
The property, which was purchased last month for $41.1 million or about $316 per square foot, is now owned by The Sobrato Organization, as are all of the buildings along Lawson Lane that ServiceNow leases. In total, ServiceNow has secured leases for 858,000 square feet of space for properties that are both already completed as well as those under-construction projects. ServiceNow also has leased 329,000 square feet at 2215 and 2225 Lawson Lane, as well as 269,000 square feet currently under construction across the street from the previous two properties. Before beginning its expansion along Lawson Lane, ServiceNow was already leasing 130,000 square feet on Jay Street.
The two-story building at 2251 Lawson Lane was originally constructed in 1979 and will help to accommodate the company’s future growth. Located between the San Tomas and Central Expressways, the building is just adjacent to the other Lawson Street properties. The Huawei Technologies campus is located just on the other side of the Central Expressway, and numerous other tech companies from ROHM Semiconductor to Roche are located nearby.
The Mercury News also reports that with the latest lease, ServiceNow has acquired enough space to house up to 5,700 employees. ServiceNow’s first quarter financial results show the company had subscription revenues of $740 million in Q1 of 2019, a 36 percent increase year-over-year. The company currently services 5,400 enterprise customers and close to 75 percent of Fortune 500 companies.
“The first quarter represented a strong start to the new year, as we continued the momentum from our outstanding 2018 performance,” said John Donahoe, ServiceNow president and chief executive officer in a statement. “Our performance shows the strength of our product and platform portfolio, and the core strategic partner role we are playing in enabling digital transformation for large public sector agencies, Fortune 500 companies and leading global enterprises.”