"We are planning for future growth and will analyze several different scenarios over the coming year regarding the development of the property," says Yahoo! CFO Sue Decker in a prepared statement released late Friday. An environmental review will be part of the process, she says.
The property is located between Old Ironsides Drive and Patrick Henry Drive off of Tasman Boulevard, next to a light rail station. The multi-parcel site was assembled over the past five years by San Francisco-based TMG Partners, which likely will oversee development of the land for Yahoo as well. Neither Decker nor Covarrubias could be reached Friday evening for additional comment.
Yahoo! reportedly evaluated over 50 Bay Area sites from San Francisco to San Jose. One of the factors in the decision was proximity to its headquarters in Sunnyvale. Yahoo! currently controls 1.7 million sf of owned and leased space in Sunnyvale and Santa Clara, Calif.
Google, Apple Computer and PDL BioPharma also are planning to expand their presence in the region. Google is planning to build a second 1-million-sf campus near its existing headquarters, on the grounds of NASA's Ames Research Center, and recently agreed to acquire its existing headquarters campus from one of the Whitehall Real Estate Funds for $319 million. Apple announced in April that it will build a second major campus on 50 acres in Cupertino.
Last week, PDL signed a 15-year corporate headquarters lease for 447,000 sf at Pacific Shores Center, a 1.7 million-sf class A-plus office park here owned by San Francisco-based Jay Paul Co. The lease, which commences Jan. 1, 2007, represents a nearly 80% expansion for the publicly held biopharmaceutical company and fills most of the vacant space within Pacific Shores Center. The company's current headquarters, totaling about 250,000 sf, is in Fremont.
Meanwhile, Sun Microsystems is doing the opposite. The Santa Clara, CA-based company recently decided to sell its largest campus, which is located in Newark, CA. The 11-building campus has 1.4 million sf of built space and room for three additional buildings totaling 400,000 sf. Local sources say the property could fetch as much as $200 million, depending on the buyer.
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