By Jon Peterson
In a rare move, Mountain View-based Sobrato Organization has placed on the market for sale the 369,000 square foot Central Technology Park office/R&D building in Santa Clara. According to published reports, this property has a value of $165 million, or around $448 per square foot.
There is another office building in the same region as Central Technology Park that is in the process of being sold that will have roughly the same price point, according to sources that track the sale of office buildings in Silicon Valley.
Rob Hollister, president of real estate for Sobrato, did confirm in an email that the property is up for sale with Eastdil Secured as the listing agent. He declined to make any further comments on the value or sale of the property.
Two of the buildings in the property located at 3410 and 3420 Central Expressway are fully leased to Intuitive Surgical. Each of the buildings is 105,000 square feet. The entire Central Technology Property is located at 3380 to 3420 Central Expressway. Other tenants in the property include Cloudinary, Nissan and Thermo Fisher.
The property is considered to be a mixture of office and R&D space. There is a total of four buildings in the property, and each one has two floors. This property was developed between 1980 and 1987.
The Sobrato Organization rarely sells off its assets, and Hollister did not offer any further details on the strategy behind the sale. Among all the Silicon Valley submarkets, Santa Clara has the highest availability rate, according to a fourth quarter of 2018 Silicon Valley Research & Forecast Report by Colliers International. That rate sits at 18.9 percent, according to the report, while the second highest availably rate is in San Jose at 13.7 percent.
Despite the availability in Santa Clara, Silicon Valley had experienced a very strong 2018 pushing gross absorption to 26.5 million square feet and surpassing activity for 2017 by 6.8 percent for all product types, according to Colliers. The availability space rate dropped for the fifth consecutive quarter, standing at 8 percent for all product types.