The first building will be approximately 190,000 square feet and ready for tenancy early next fall.
SUNNYVALE, CA—Not only an uptick in investment sales in first quarter but a strong leasing environment has clearly signaled to buyers that there is business to be done in Silicon Valley. Construction deliveries are also a rarity although there is one project on the horizon.
Construction has commenced on a class-A office development site in one of Silicon Valley's most active submarkets minutes from downtown Sunnyvale. This fully entitled development opportunity will provide corporate users with seamless Caltrain connectivity and freeway access at the convergence of Highways 101 and 237.
The three-building project will be delivered in phases, allowing a tenant the unique opportunity to synchronize growth plans with the commencement of occupancy. The first building, located at 684 W. Maude Ave., will be approximately 190,000 square feet and ready for tenancy early next fall.
A joint venture between Harvest Properties and Invesco is developing the project. The partnership has engaged Korth Sunseri Hagey Architects to lead all design efforts. Level 10 Construction has been hired as the general contractor.
“There are numerous reasons we feel this campus will provide an incredible headquarters or Silicon Valley beachhead for today's leading corporations and growth technology companies, where the ability to attract and retain Silicon Valley's top talent is of primary importance,” according to Harvest Properties' Blair Volckmann and Preston O'Connell. “With this in mind, we have refined the development to include best-in-class new construction, thoughtfully programmed indoor/outdoor amenity space, prominent identity and flexible scalability; all of which, when combined with the efficient nearby transportation solutions and its central Silicon Valley location, will yield a one-of-a-kind property.”
Newmark Knight Frank and JLL have been retained as the exclusive listing agents. The team from Newmark Knight Frank will consist of Jeff Arrillaga, Joe Kelly and Mike Saign. The JLL team will be comprised of Mark Bodie, Steve Clark and Toss Vallentine.
“This development has thoughtfully incorporated all of the critical elements today's leading Silicon Valley companies are seeking to differentiate themselves in the fierce fight for best-in-class workforce talent,” Saign tells GlobeSt.com. “We are ecstatic to see the first phase of construction underway and look forward to sharing the full scope of this optimized campus opportunity in the months ahead.”
The listing team also points out the rarity of a campus site of this size.
“This project will offer tenants unmatched proximity to world class corporate neighbors and potential business partners including Apple, LinkedIn, Microsoft, Riverbed, Alibaba.com, Proofpoint, Synopsys, Walmart.com, Twitter, 23&Me,” adds Kelly. “Highly efficient and customizable campus opportunities of this scale and location are becoming increasingly harder to find in Silicon Valley.”
Coming off one of the strongest years in recent history, the Silicon Valley office market experienced a slower start to 2019 in comparison but still posted strong numbers with positive net absorption for the sixth straight quarter of 122,344 square feet, according to Newmark Knight Frank's first quarter office report.
Nevertheless, with no new construction coming to market and leases closing at a slower rate, the market remained relatively flat to start the year. Vacancy was unchanged at 10%, while average asking rates climbed by $0.08 per square foot to $4.25 per square foot, erasing the drop-off from last quarter.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
