SUNNYVALE – LinkedIn, setting the stage for its dramatic expansion in Sunnyvale, has bought two large plots and rented a large new office building, contrary to dire forecasts of a massive exodus from Silicon Valley.
Tech titanium paid $ 122.8 million for two research and office buildings at 810, 820, and 870 W. Maude Ave. in Sunnyvale, filed Dec. 3 with the Santa Clara County Registrar.
In addition, LinkedIn rented a modern office building at 684 W. Maude Ave. in Sunnyvale, with a total area of 194,600 square feet, which is across the street from two sites that were bought by an employment-focused social network.
LinkedIn’s Sunnyvale deals were driven through commercial real estate firms Colliers, Newmark, and JLL, according to real estate experts familiar with the transactions. All transactions concerned an existing building and future development sites in a Sunnyvale project called Catalyst.
Newmark brokers Mike Sane, Joe Kelly and Jeff Arrillag and JLL brokers Mark Bodie and Toss Valentine, represented by JLL, were listing agents for the Catalyst project. LinkedIn was presented by Colliers.
Together, these lease and purchase deals indicate a significant – and ongoing – major expansion in Silicon Valley for LinkedIn.
And the deals could give Sunnyvale 2,900 jobs.
According to the brochure for the three-building campus, the buildings on the sites that LinkedIn bought were due to be completed by the end of 2023.
An alliance of real estate agencies Harvest Properties and Invesco Advisors, which act as a group called Sunnyvale Owner, has sold two sites on West Maude Avenue to LinkedIn.
In addition, Harvest and Invesco jointly developed and own a building that LinkedIn has leased in West Maude.
LinkedIn deals, as well as a number of large recent lease and property deals involving multiple tech titans, suggest that tech companies are not leaving Silicon Valley in droves, as some experts have predicted.
Instead, tech companies of all sizes, including the largest firms, have recently taken steps to solidify their position in Silicon Valley.
Recent major deals include:
– Meta Platforms, whose apps include Facebook, leased 719,000 square feet in North Sunnyvale on a four-building campus near the corner of Crossman Avenue and Caribbean Drive.
Meta also leased 520,000 square feet in Burlingham on Airport Boulevard as part of a project known as Peninsula Innovation Point, a deal also announced Wednesday.
– In March, Apple leased 698,000 square feet in Pathline Park in Sunnyvale, agreeing to lease several buildings as part of a deal between commercial real estate firms CBRE and Cushman & Wakefield.
“Apple is also pushing ahead with the construction of a new campus in North San Jose.
– In September, Apple paid $ 450 million for five office buildings in Cupertino, located near Interstate 280 and North De Anza Boulevard.
Tesla rented a large office building in Palo Alto, a deal that was struck even after EV maker CEO Elon Musk said the company would move its headquarters to Texas. Tesla maintains its Fremont car plant, at least for now.
“Google is moving forward with a large new mixed-use area in downtown San Jose, new office centers in north San Jose, and major development projects that will create campuses in Mountain View and Sunnyvale.
“Adobe is building a new office tower that will significantly expand its current three-story headquarters campus in downtown San Jose.
– Intuitive Surgical is moving forward with the construction of a huge new 1.21 million square foot campus in Sunnyvale, and has spent at least $ 109.1 million on real estate that could support further expansion.
– Fortinet spent $ 80 million from 2012 to early 2021 buying a variety of properties, aiming to create space in its home territory in Sunnyvale.
– Applied Materials acquired properties and buildings in Sunnyvale through purchases that have exceeded $ 190 million in recent years.
In addition, it seems that the tech boom and rise in rents for offices in Silicon Valley have prompted investors to gobble up many large properties in Silicon Valley.
In San Jose, investment giant AGC Equity Partners paid $ 780 million for three buildings in a section of the Coleman Highline multi-functional technology campus in north San Jose. The London-based AGC deal represents the largest amount paid for real estate in Silicon Valley in 2021 in a single transaction.
Tech company expansions are deals that are designed to do much more than just reduce office vacancy rates: they represent the potential for big growth in the Silicon Valley job base.
LinkedIn’s rented office building at 684 W. Maude could house 800 to 1,000 employees.
Nearby sites, which LinkedIn acquired, have old office buildings that will be demolished and replaced with two new office buildings, each measuring 188,800 square feet.
This means that LinkedIn can accommodate between 1,500 and 1,900 workers in buildings that will grow on newly purchased sites.
The entire campus of three buildings, if all occupied, could house between 2,300 and 2,900 LinkedIn employees after completing the last two buildings.
Catalyst developers have created a technology campus to protect employees from coronavirus and other viruses.
“Tenants will be able to integrate customized space design features on top of a carefully designed, COVID-friendly base building to optimize the workplace for their employees,” Harvest and Invesco said on the Catalyst project website.