Silicon Valley’s Office/R&D Markets Off to Slow Start in 2019 but Demand Strong and Large Transactions Coming

Owner Appetite Remains Hearty for Tech-Driven Real Estate SAN JOSE, Calif., April 22, 2019 – Cushman & Wakefield’s latest market reports for Silicon Valley’s Office and R&D sectors revealed a sluggish start to 2019, after having combined for a robust 2.85 million square feet (msf) of occupancy growth in 2018—largely stemming from the office sector. While the office market did continue its growth trend reporting another 269,000 sf of positive net absorption in the first quarter, the R&D sector finished with a negative 265,000 sf, leading to a virtual wash between the two sectors. Notably, both sectors maintain very healthy single-digit vacancies coupled with rent growth, while demand remains strong. “Historically, the early part of the year can start slow in the Silicon Valley commercial real estate market and that is exactly what happened in 2019,” said Julie Leiker, Cushman & Wakefield’s Market Director for Silicon Valley. She added, [...]

By |2019-04-22T12:15:53-04:00April 22nd, 2019|In the News|0 Comments

Oaktree joins Ellis Partners Venture to Bring New Investment to the Pruneyard Office Towers in Silicon Valley

Campbell, CA – Ellis Partners announced today that it completed a transaction for funds managed by Oaktree Capital Management, L.P. (“Oaktree”) to purchase a majority stake in the three-building, 365,000-s.f. Class A office component of the iconic mixed-use Pruneyard complex. Ellis Partners, which purchased the property in 2014 will retain an ownership stake and continue to manage the project. The Pruneyard Office Towers are centrally located in the heart of Silicon Valley’s West Valley submarket with prominent visibility and ease-of-access along Highway 17 and less than a 10-minute walk from downtown Campbell (via a newly improved walkway) as well as the Hamilton VTA light rail station. As part of this West Valley landmark property, the towers are directly adjacent to the recently transformed the 260,000-s.f. Pruneyard Shopping Center and a 169-room Doubletree by Hilton hotels.  The Oaktree transaction provides the new ownership group with fresh capital [...]

By |2019-02-27T15:52:59-05:00February 20th, 2019|In the News|0 Comments

Graymark Capital Makes $45,250,000 R&D Acquisition In Sunnyvale, Ca

San Francisco, CA, February 2019 – Graymark Capital, Inc., in partnership with a major real estate private equity fund, has acquired a 78,623 square foot single tenant R&D building for $45.25 million. 785-787 N. Mary Avenue is a two-story R&D property located in the Peery Park submarket of Sunnyvale, CA with direct access to Highways 101 and 237. The property was constructed in 1980 and subsequently modified to an open floor plan with an R&D component. Sitting directly across from Irvine Company’s future 1.3 million square foot Pathline Park project, the project benefits from the new Peery Park Specific Plan designed to increase density and attract major technology firms to the area. The property is 100% leased to a leading global technology tenant based in Silicon Valley. Other major tenants in the Peery Park submarket include LinkedIn, Mercedes, Nokia, Volvo, Synopsis, Proofpoint and Corning. The project was purchased under Graymark’s [...]

By |2019-02-28T14:46:57-05:00February 18th, 2019|In the News|0 Comments

KBS Signs Over 30,000 Square Feet in Leases with Berliner Cohen at Ten Almaden

SAN JOSE, Calif. (Jan. 31, 2019) – KBS, based in Newport Beach, California, announced today the signing of 33,830 square feet in leases at Ten Almaden in San Jose, California. Berliner Cohen, LLP, one of the largest and oldest law firms in San Jose serving the business and regulatory needs of private business and public agencies, renewed their lease at the property. The property is part of the KBS Real Estate Investment Trust III portfolio. Ten Almaden is a 17-story, Class A office tower in downtown San Jose that offers 309,225 square feet of rentable space. Tenants enjoy the building’s numerous amenities, including an outdoor terrace that features a custom fire pit and barbeque, in addition to views of the downtown city skyline. The property is further equipped with a tenant lounge, a fitness center with a pool, spa and locker rooms and a four-level parking garage. Ten [...]

By |2019-02-28T15:52:28-05:00January 31st, 2019|In the News|0 Comments

Silicon Valley’s Office/R&D Sectors Report Significant Growth in Q3 combining for over 1.9 MSF Net Absorption

Office Market may be Headed for Record Year, while R&D Market Rebounds SAN JOSE, Calif., October 15, 2018 – Cushman & Wakefield’s newly released office and R&D market reports for the third quarter of 2018 showed strengthening occupancy growth, with both sectors combining for more than 1.9 million square feet (msf) of positive net absorption. The R&D market contributed over 1.3 msf of growth with the office market adding another nearly 600,000 sf in Q3. Under the strain of two quarters of lackluster performance, the R&D sector broke through in the third quarter with a surge in deal velocity, a stabilization in net absorption and increased rents. And in the office sector, after three standout quarters it seems apparent that 2018 will not only outperform 2017 but may rival the record-setting growth of 2015. Julie Leiker, Cushman & Wakefield’s Market Director for Silicon Valley, said, “Year-to-date office net absorption has [...]

By |2018-10-15T16:33:52-04:00October 15th, 2018|In the News|0 Comments