The Sunnyvale, CA-based Juniper Networks, a provider of networking and security solutions, has a major presence in the area. According to Coleen Hurley, real estate manager for Juniper Networks, the sublease deal in this facility was for surplus space.
Brian McKenzie, John Lashar, John Wilson and Jamey Lipscomb of Richards Barry Joyce & Partners represented Juniper Networks in the transaction. Red Hat was represented by Chris Peterson, Steve Rich and Peter Trivelas of Equis Corp. The building is owned by the Gutierrez Co.
"This sublease benefits all parties involved," says McKenzie, a partner at Richards Barry Joyce & Partners. "Juniper Networks has found an excellent subtenant in Red Hat, which in turn gains by occupying well maintained office space that is optimized for a high tech occupant."
According to research by Richards Barry Joyce & Partners' third-quarter market report, the Route 495/North submarket is comprised of 15 million sf. At the end of the third quarter of the year, the vacancy rate in the submarket stood at nearly 32%, with 60,000 sf of positive absorption. A second quarter 2004 market report by Grubb & Ellis indicates that the suburban market has nearly six million sf still available for sublease. But while the figure demonstrates that excess sublease space continues to figure in defining the suburban office market, that number is nearly 800,000 sf less than it was in the third quarter of 2003.
Average asking rents for office space in the area are about $16 per sf, but sublease deals tend to command a lower than average rate.
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