Leasing may be slowly moving in the right direction across Silicon Valley. NVIDIA is one of the latest technology giants expanding across the region, and earlier this year the company leased 101,893 square feet at The Sobrato Organization’s 2421 Mission College Blvd. in Santa Clara, according to the second quarter of 2022 report by brokerage firm Colliers.
The property was leased on a direct basis in a campus that consists of four buildings neighboring California’s Great America park. The other three buildings remain vacant, according to published reports, even as the region is seeing four consecutive quarters of positive absorption.
NVIDIA is representative of the types of companies that are expanding in the region, according to Colliers. And while direct office asking rents softened during 2022, R&D asking rents reached a new peak of $2.80 NNN, or up $0.26 on a year-over-year basis.
This comes at the heels of the news that Silicon Valley’s sublease market expanded to over 8 million square feet even as it remains below the peak of 9.8 million recorded in the second quarter of 2021.
The Sobrato Organization has been working on renovating the campus, which goes by the name of Mission Technology Park. The 419,357 square-foot office park is located at 2421-51 Mission College Blvd. and the owners worked with Studios Architecture to revitalize the properties. The company worked on upgrading outdoor features, updated the skins of the buildings and transformed the interior into a modern facility fit for modern technology workplaces. The interiors of the buildings were gutted, providing a blank slate for new tenants, inserting skylights and atria to bring in natural light, according to Studios’ website.