Oracle to Sublease 186K SF Bay Area Office Building

Oracle, which two years ago moved its headquarters from Silicon Valley to Austin, is busy reducing its California office footprint as part of a 20% global downsizing.

The tech giant has listed its five-story, 186K SF building at 5805 Owens Drive in Pleasanton near San Jose for sublease, according to a report in the San Francisco Business Times. The property is being listed on Loopnet and Avison Young is the broker representing Oracle.

Since announcing the HQ move to Texas at the end of 2020, the company has listed for subleasing an 86K SF office in San Francisco and a 230K SF building in Belmont. The company also sold a 17-story office tower it owned in San Jose for $155M.

Oracle has downsized its real estate portfolio—which topped out at more than 24M SF—by about 20%, or nearly 5M SF, in the past two years. Earlier this month, the tech giant put up for sale it 320K SF office campus at 2600 Colorado Avenue in Santa Monica.

Tech companies have been putting offices up for sublease in Silicon Valley as well as the San Francisco area. In October, a two-building Silicon Valley office campus—which has been occupied by a parade of high-profile tech players for more than five years—went back on the market in the wake of Meta’s termination of a 457K SF lease on the campus.

WeWork is listing a pair of adjacent six-story office buildings at 391 and 401 San Antonio Road in Mountain View, according to Colliers Q3 Silicon Valley market report.

LinkedIn was the original tenant of the office campus, developed by Merlone Grier Partners. After Microsoft acquired LinkedIn in 2016, the lease on the campus—running until 2029–traded to flex office pioneer WeWork, which then leased the complex to the company formerly known as Facebook.

The Mountain View office campus is owned by Brookfield Properties. According to Colliers, Meta exercised its opt-out clause earlier this year and vacated the 218K SF building at 401 San Antonio in the second quarter, and then left its larger twin in the third quarter.

8×8, the cloud communications company, put its 178,000-square-foot Silicon Valley headquarters on the sublease market.

The tech company is seeking one or more subtenants for the space it currently occupies as the single tenant of the five-story building at 675 Creekside Way in the San Jose suburb of Campbell.

The building is owned by NY-based JOSS Realty and Australian private equity firm Qualitas, which acquired it in March 2020 — a year after it opened — for $139 million. JLL is marketing the sublease.

In August, Netflix listed for sublease a 165,000-square-foot office campus in nearby Los Gatos.