101 Redwood Shores Parkway

NORTHERN CALIFORNIA

Gaming company Perfect World Entertainment has signed a lease to occupy a 100,000-square-foot, four-story class A office building at 101 Redwood Shores Parkway in Redwood City in this week's roundup of commercial real estate news in the West. The property, which is owned by Diamond Investment Properties, will be the new North American headquarters for Perfect World. Kristoph Lodge and Matt Winters of Cornish & Carey Commercial Newmark Knight Frank’s Palo Alto office report that this is a major expansion for the gaming company, which now occupies 33,000 square feet in Foster City’s Parkside Towers. Perfect World Entertainment primarily publishes massively multiplayer online role-playing games and provides online services in North America. Lodge and Winters represented Diamond Investment, with Dan Latini and Luke Wilson of Colliers International representing Perfect World. Diamond Investment principal, Steve Diamond commented, “We are experiencing first-hand the explosive growth and opportunity in the gaming industry." Perfect World Entertainment plans to occupy its new Redwood City property in March of 2012. One of the factors influencing Perfect World Entertainment’s decision to relocate its North American headquarters was the property’s close proximity to Electronic Arts, a leading global interactive entertainment software company, which owns its 500,000 sf headquarters campus in Redwood Shores located less than a mile from Perfect World Entertainment’s new headquarters. Said Lodge, “The cluster effect can be a potent force in commercial real estate. The Mid-Peninsula is quickly becoming a hub for the gaming industry, and this trend will continue to attract industry peers nearby and drive rent premiums. In fact, there is currently over 100,000 sf of additional space being negotiated with gaming companies within one mile of Perfect World Entertainment.”