Envivio Expands, Goes Direct at 400 Oyster Point Blvd.

SAN MATEO, CA-Envivio Inc. is expanding and relocating within Oyster Point Marina Plaza, where it recently has been subleasing just less than 5,000 sf on the first floor of 400 Oyster Point Blvd. The provider of integrated streaming media tools and systems is staying in the building, but moving to just under 11,000 sf on the third floor of the five-story building that it is leasing direct from the owner, Kashiwa Fudosan America, Inc.Paul Andrews of Colliers International represented Envivio in the transaction while Cushman & Wakefield broker Scott Ennis represented building ownership. The negotiated lease rate was not disclosed by the parties involved, but the estimated $1-million deal is said to have included some front-end discounts to account for the fact that Envivio still has a year left on its first-floor sublease and has not yet found a replacement tenant. The typical asking lease rate for space in the building ranges from $1.50 to $1.75 per sf per month.Ennis tells GlobeSt.com the lease pushed occupancy at Oyster Point by about 250 points, from around 87% to around 90%. The largest available block of space in the complex is now 16,000 sf. “We’ve been steadily making deals, three or four a month,” says Ennis. “The deals have been smaller — 1,000- to 3,000-sf in size; this is one of the bigger recent deals.”Both brokers tell GlobeSt.com that vacancy in the 2.5 million-sf South San Francisco office market was pushing 50% at the beginning of the year, but is now well below 30% thanks to a ramp up in leasing by tech companies. They say one big reason for the drop in vacancy is Genentech. The biotechnology research company this year leased all of the 240,000-sf 611 Gateway Building owned by Boston Properties and is rumored to be seeking another 100,000 sf in the area. “South San Francisco continues to see large blocks of space removed from the market,” says Andrews. “Companies over the past nine months, especially those involved in the rapidly growing bio tech industry, have been taking advantage of historically low leasing rates… .”