Tishman Speyer Closes Largest Private Sector Office Lease of the Year with Meta

With only a month left in the year, Tishman Speyer has landed the largest private sector office lease transaction in 2021. Meta signed a 719,037-square-foot lease for the entire Sunnyvale office campus in Silicon Valley.

Tishman Speyer purchased the office campus seven months ago from NetApp, which relocated its global headquarters from Sunnyvale to a 301,019-square-foot space at Santana Row, Federal Realty Investment Trust’s mixed-use complex in San Jose, CA. The company sold and vacated the office campus as part of the move.

According to Tishman Speyer President and CEO Rob Speyer, the lease transaction shows that Silicon Valley continues to be an important tech and innovation hub, even following the events of the last year. “Silicon Valley remains the global center of innovation and its importance will continue to grow even as other innovation hubs emerge. We were always convinced that the tech sector would maintain a strong appetite for high-quality collaborative spaces and are excited Sunnyvale will house one of the world’s leading companies,” he said in a statement.

The office campus is on more than 21 acres with four office buildings, two parking structures and outdoor recreational space. It features a gym with a basketball court, lockers, showers, outdoor volleyball court; an executive briefing center; a full-service cafeteria; multiple kitchens and break centers; and phone rooms. Workers will also have access to Tishman Speyer’s ZO suite of lifestyle, convenience and amenity service offerings.

Phil Mahoney, Michael Saign and Jon Mackey of Newmark were Tishman Speyer’s listing brokers for the property.

While Silicon Valley saw a contraction in office demand during the pandemic, many investors are betting on the market’s future. KKR’s fund KKR Real Estate Select Trust acquired HQ @ First, a 603,000-square-foot office campus in Silicon Valley, from Japanese developer MORI TRUST CO. The property is currently fully leased to an investment-grade tenant. And, Dollinger Properties has purchased Valley Creative Center, an office property in the Silicon Valley, for $56 million from Vista Investment Group. The property is a six-building R&D/office campus totaling 166,928 square feet.

While there are several investors scooping up properties in the market, there have also been new construction deliveries. In the first quarter, office inventory in the market increased by 17 million square feet, according to research from Savills, which could give tenants an upper hand in negations.