The maker of Web site-building software struck a seven-year, $750,000 lease for 35,000 sf near I-680 in Koll Dublin Corporate Center. The location will be used to house engineers, create a shorter commute for East Bay employees, and more easily recruit new employees.
Macromedia's East Bay employees comprise 25 percent of the company's Bay Area work force, which tops 800 people. Another 25 percent is scattered throughout the North and South Bays. Half of the Bay Area workforce is in San Francisco.
The company says it might allow it to more effectively recruit from the South and East Bays. It will definitely cost less. East Bay real estate is about 40 percent cheaper per square foot than the company's San Francisco and Redwood Shores digs.
Koll Development Co. owns and is developing the new office complex in which Macromedia will take third floor digs below EMC Corp. and above SuperGen Inc. The 277,000-sf first phase of the development, nearing completion, is now 95 percent full. Construction on the next phase is scheduled to start in September. Upon completion, it will be 596,000-sf business center worth $175 million.
Leases in the second phase will be roughly 20 percent higher than the first deals in the first phase, though Sunset Development Co.'s imminent work on a 750,000-sf expansion at the Bishop Ranch Business Park could soften rent growth.
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