After a quiet second quarter in which the Silicon Valley office market saw a net loss in occupancy after six consecutive quarters of gains, the market is getting a huge shot in the arm from two large leases by two high-quality tenants.
Lab126, a research and development company that is part of Amazon.com, is on the verge of signing a lease for an existing 226,000-square-foot building at Jay Paul’s Moffett Towers development in Sunnyvale and a second building, which is under construction, that is to have 357,000-square-feet.
Lab126 is “an engineering team developing technology and products for wireless consumer electronic devices, including Amazon Kindle,” according to the LinkedIn page of its president, Gregg Zehr, a former vice president at both Apple Computer Inc. (now Apple Inc.) and Palm Computing.
According to two marketplace sources with direct knowledge of events, in total Lab126 is expected occupy nearly 600,000 square feet. That represents an expansion based on its current occupancy at two Cupertino locations where it has some 200,000 square feet, according to a third source with direct knowledge of events.
At the same time, Mountain View-based LinkedIn Corp. is on the cusp of signing a lease for roughly 600,000 square feet in Sunnyvale at a to-be-completed campus only recently entitled. San Jose-based JP DiNapoli Cos. Inc. secured approvals for more than 600,000 square feet of corporate campus space at West Maude and North Mathilda in the last month. The site is currently occupied by about 300,000 square feet in multiple buildings.
The new entitlements allow development of two six-story buildings, one four-story building and a five-story parking garage. An existing building with about 75,000 square feet will remain. That building, at 599. N. Mathilda Ave., was leased to LinkedIn earlier this year for seven years by the DiNapoli companies. In the same month, the Internet-based professional networking site leased another 88,771 square feet from ING Clarion Partners at 755 Mathida Ave. and 680 Vaqueros Ave., also nearby.
John DiNapoli, president of the DiNapoli companies, referred calls to listing broker Phil Mahoney. Mahoney, who is also a listing broker for Jay Paul Co., declined comment on both transactions.
Lab126 did not respond to an email and a call for comment. A LinkedIn spokesperson said via email that the company would have no comment.
It is not clear whether LinkedIn plans to move from its current headquarters location in Mountain View not far from the Google Inc. complex to Sunnyvale or whether its Sunnyvale digs represent expansion. At the end of the first quarter, the company had nearly 2,500 full-time employees worldwide, up by about 400 from the beginning of the year and up from 1,000 at the beginning of 2011.
Lab126 is also hiring aggressively. The company lists 230 open positions on its web site for jobs as diverse as corporate counsel to senior software development engineer.
Late last year, LinkedIn signed a sixth amendment to an existing lease to add 12 years to a 145,000 square-foot lease for its 2029 Stierlin Court headquarters and several surrounding buildings with HCP Inc., a Long Beach real estate investment trust that specializes in health care real estate.
At the same time, it expanded into an additional 158,352 square feet of existing buildings nearby also owned by HCP, again signing a 12-year commitment, and came to an agreement with HCP for the landlord to build another 70,000 square feet at 2019 Stierlin Court. The company agreed to lease the new building for 10 years.[box style=”0″]