23andMe Vacating 155K SF In Sunnyvale, Relocates HQ To South San Francisco
23andMe has trimmed down its office space, relocating its corporate headquarters out of its 155K SF space in Sunnyvale, California, to a location nearly half the size in South San Francisco with a much shorter lease, according to a Securities and Exchange Commission filing.
The genetic testing company relocated its HQ from 223 North Mathilda Ave. on April 1 into 65K SF in 349 Oyster Point Blvd. in South San Francisco.
23andMe originally leased 31K SF at Oyster Point in 2019 through Kidder Mathews. The company leased an additional 34K SF in 2021 at the same space.
According to the SEC filing, the lease held by 23andMe at the Sunnyvale address is set to expire on July 31, 2031. The company has been trying to sublease its headquarters for years. It put 35K SF on the market in 2019 and then put the full 155K SF up for sublease about a year ago.
The size and location of the Sunnyvale facility no longer make sense for the company, 23andMe told Bisnow in a statement. The company indicated it has not fully vacated its former HQ yet, but it did not offer a timeline or say if it is still seeking to sublease the space or to terminate its lease.
"In 23andMe's SEC filing we noted we changed our headquarters' legal address since we plan to eventually vacate our Sunnyvale office, as it's more space than practical considering a post-covid hybrid workforce and the geographical distribution of our employees has changed with 23andMe's acquisition of Lemonaid Health," 23andMe Vice President of Operations Eli Fry told Bisnow via email. "We plan to secure a space that meets the changing needs of our employees and business."
Its 65K SF lease in South San Francisco is set to expire on Jan. 31, 2025.
The relocation leaves a large life sciences vacancy in Sunnyvale, though demand for life sciences space is at an all-time high, particularly in the Silicon Valley area. South San Francisco has also become a hub for life sciences.
The space at 223 North Mathilda Ave. is owned by Stockbridge Capital Group, according to public records. Stockbridge Capital purchased the property in 2019 for $183M from Spear Street Capital, which had purchased the property in 2014 for $16.1M. Cushman & Wakefield is handling the lease on the property.
349 Oyster Point is owned by Kilroy Realty, which purchased the property in 2018 for $111M.
UPDATE, JUNE 2, 3:08 P.M. PT: This story has been updated to include a comment from 23andMe.
