The publicly traded chip design software maker signed an eight-year lease for the space directly with 3Com. CB Richard Ellis' Michael Huaco, Dave Fukuda and Tom Taylor represented Magma in the transaction while Brad Martin of Cushman & Wakefield represented 3Com. The exact lease rate on the deal was not immediately available, but local brokers tell GlobeSt.com that market-rate range for the size and type of building they are leasing is $1-$1.10 per sf per month, triple-net. The deal included some free rent instead of a tenant improvement allowance.

Fukuda tells GlobeSt.com that Magma spent 12 months in the market searching for the right space, one that offered plug and play space, quality and flexibility at a competitive lease rate. The space was already built out as 95% office with a little warehouse and a little lab space. Fukuda says the deal includes signage with visibility from Highway 237. "There's a lot of space on the market, but quality, deliverable space is hard to find," he says.

The new location, at 5460 Bayfront Plaza, can accommodate upward of 400 employees and includes additional research and development labs, and a training center three times larger than in Magma's previous facility. "Since our IPO in November of 2001, Magma has achieved some remarkable growth--we now have more than 300 employees and more than 90 customer companies worldwide," says Rajeev Madhavan, chairman and CEO of Magma. "With our new headquarters situated so close to many of our Silicon Valley customers, it will bring us greater efficiencies and collaboration capabilities."