Apple Gobbles Up More Cupertino Office Space
Apple continues to gobble up Silicon Valley real estate, and is now leasing two large office buildings under construction in Cupertino.
 Kenneth Rodrigues & Partners The 260k SF lease at Main Street Cupertino is part of a new urban-style, mixed-use center landing next to Vallco Shopping Mall and across Interstate 280 from the futuristic 2.8M SF Apple Campus 2 taking shape. Apple has leased almost every sizable piece of available space in the city, which is leaving office space numbers almost at zero, according to Cushman & Wakefield. Now there's just some 20k SF of office space in the project available, which owner Sand Hill is reserving for smaller biz and startups, reports the Silicon Valley Business Journal.
 Apple employs more than 16,000 people in Cupertino. A Cushman source tells Bisnow that Apple has been gobbling up space before it hits the market and there's no real absorption because Apple takes everything before it comes on line. And when the developer first announced the Main Street Cupertino project, it said it didn't want Apple, but rather a tenant mix (that thought process clearly changed). There are virtually no new developments in Cupertino that aren't already called for, adds the source. The tech giant recently revealed plans to dump $1.9B into data centers in Ireland and Denmark. It's Apple's biggest European investment to date, and the centers will be powered by renewable energy. [SVBJ] |
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TIBCO Office Sells for Record Price—But What Is It?
In what is surely one of the largest sale transactions in Palo Alto history, a 292k SF office/R&D campus in Stanford Research Park just traded. But investment sales sources with knowledge of the leaseback rate say the $330M figure being reported doesn't make sense on a cap rate basis, so stay tuned for the confirmed figure. The 3301-3307 Hillview Ave property was just scooped up by Morgan Stanley's Prime Property Fund. Bisnow was the first to report on the rare four-building cluster being up for grabs. Cushman & Wakefield repped seller TIBCO Software and says the property sold for the highest price ever in Palo Alto, though the figure was undisclosed. TIBCO has signed a long-term leaseback agreement with the new owner. The capital chasing the deal was "very diverse," sources say, and "very global." Just last month, C&W's Hospitality Group advised in another historic sale: The Calistoga Hills Resort, an 88-acre site in the foothills of Calistoga.
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SRS Real Estate Partners: Silicon Valley Update
 The lack of retail vacancy in Silicon Valley is well known, but SRS Real Estate Partners SVP Randol Mackley breaks it down further: In Santa Clara County, there is 76M-plus SF of retail property, with a 3.6% vacancy (Cupertino's vacancy is 1.6%). Because of the geographical squeeze of the Pacific Ocean and the San Francisco Bay, developers are compelled toward mixed-use and vertical product, with tremendous competition for five-star properties. Restaurants are aggressively pursuing Silicon Valley sites, making up about 70% of the demand trend. Randol and SRS partner Bruce Frazer are behind San Antonio Shopping Center selling to Federal Realty (the company also owns Santana Row). San Antonio's 33 acres is a significant Northern California transaction in this tight environment: shopping centers of this magnitude do not trade often. Randol sees a strong three-year cycle; he doesn't know any broker who is not working long hours. For more info on our Bisnow partner, click here.
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Chinese Investment Firm
Eyes Cushman & Wakefield
The expected $2B sale of Cushman & Wakefield is still months away, but a Shanghai-based investment firm has emerged as an early front-runner to acquire the mammoth brokerage. Fosun International is reportedly in early talks to buy the firm, according to sources familiar with the negotiations.
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Silicon Flex-es Strong Muscles
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Cushman & Wakefield head of research for the Americas group Maria Sicola says skies should be bright for the industrial sector over the next three years and SV is a star, according to a report fresh off the press this morning. In terms of flex space, tech is driving new supply to the highest level in six years. The report says Silicon Valley has outperformed other regions in space absorbed over the past three years and is expected to remain on top, accounting for 18% of national absorption in that time period.
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Other top performers around the country are Boston, driven by tech, pharmaceuticals and life sciences; Denver (energy and aerospace); and Dallas (energy and technology). The three are predicted to absorb a combined 4.8M SF in the same three-year period. Portland is among the markets expected to experience positive momentum going forward. |
Collicutt Opens San Jose Office
With a growing demand for power generation distribution, parts and service throughout the Bay Area, Collicutt Energy Services just opened a new facility in San Jose. It's the company's fifth location in the state, and will help speed up response times to customers throughout the area. The 5k SF office opening at 877 Commercial St comes on the heels of a new distribution partnership agreement with MTU Onsite Energy, a Rolls-Royce Power Systems brand, and provider of diesel and gas-based power system services. Above, Collicutt president David Brown. |
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You Can Use Now
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