Cities like Fremont and Campbell Heating Up

campbellThe Carlyle Group is buying Lincoln Court, one of the few higher-end office complexes in Campbell, in a deal rumored to be roughly $41 million, or $335 per square foot. Principal Global Investors is the seller.

Campbell is a market with limited inventory, and brokers say the West Valley city is poised to pick up as tenants get pushed out of nearby markets such as Los Gatos, where Netflix has continued to gobble up space. In a sign of bullishness on the market, Carlyle is raising asking rents at the 124,000 square foot, courtyard-style building located at 2105 S. Bascom Ave. to $3.75 per foot, full service.

Read the full story in the Silicon Valley Business Journal.

Multifamily Development Segment Rides a Perfect Storm

crescentAs the commercial building boom accelerates within the South Bay’s Golden Triangle district, the burgeoning North San Jose tech district bounded by highways 101, 880 and 237, future workers will be able to take advantage of new residential options rising in the surrounding regions and linked by bus, light rail and, in the near future, BART.

Tech giants such as Samsung and others are expanding their operations within the Golden Triangle while other major players, such as Adobe, Acer, Oracle and Pinger, continue to lure technology workers within the downtown San Jose core. These workers, according to Jerry Nickelsburg, senior economist with the UCLA Anderson Forecast, are predominately Millennials (18-33) who prefer to live close to work in more densely populated areas rife with restaurants and shops.

Read the full story at The Registery, here.

Buildings Get Smarter and So Do Workplaces

wallsIn an era of rapid technological progress, is there a reason that an office complex or classroom building—both housing lots of smart people—can’t elevate its own IQ?

In a smart building, software allows communications among traditionally separate systems running everything from lighting, heating and ventilation to security and telecommunications. The systems’ convergence creates a single intelligent network that allows a building to react dynamically to real-time conditions using input from every source attainable. Moreover, smart buildings are the backbone of smart work environments, something that tenants increasingly want.

“They are engineering smart buildings with automation, which facilitates the creation of smart work environments.” Bob Brown, chief executive and co-founder, Fremont-based Teladata LLC
Energy is typically the largest expense for any U.S. building owner or user, accounting for 30 percent of operating costs in an average commercial building, according to the U.S. Environmental Protection Agency. Overall, commercial and industrial buildings use $200 billion a year nationwide on power, producing nearly half of the nation’s greenhouse-gas emissions. Smart buildings are being credited with reducing energy use from 20 percent to 30 percent as compared to conventionally built and operated structures.

Read the rest of the story at The Registryhere.

 

Sale of Pacific Commons Shopping Center in Fremont

SAN FRANCISCO, CA – December 11, 2013 – HFF announced today the sale of Pacific Commons Shopping Center, an 865,783-square-foot regional power center in Fremont, California.

Noted as one of the largest power centers in Northern California, HFF marketed the property on behalf of the seller, an affiliate of Catellus Development Corporation, a TPG Real Estate investment. Heitman purchased the asset which was subject to an existing loan.

Pacific Commons Shopping Center is located at the southwest corner of Interstate 880 and Auto Mall Parkway. Completed in phases between 2004 and 2006, the center is part of a larger approximately 1.2 million-square-foot retail development situated within an 840-acre mixed-use master planned community that also includes 1.1 million square feet of office/R&D and light industrial space, an 11-dealership auto mall, 440-acre wetland preserve and a 153-acre land parcel with entitlements for 3.4 million square feet of additional office, R&D and retail. Situated on 79.2 acres, Pacific Commons Shopping Center is approximately 97 percent leased and is anchored by tenants such as Lowe’s, Costco, Nordstrom Rack, TJ Maxx, HomeGoods, Staples, Kohl’s, DSW, Target (NAP) and Cinemark Century Theaters (NAP).

Read the rest of the story on The Register - here.

Google to Rent Former Mall in Largest Silicon Valley Deal

google_office

Google appears to be starting tenant improvements on the former Mayfield Mall site, now called San Antonio Station.

Google agreed to rent a former shopping mall in Mountain View, in the largest Silicon Valley lease deal of the year, according to the property’s owners.

The former mall is being renovated into an office complex, with completion scheduled for next year, real estate investment firm Rockwood Capital LLC said today in a statement. Once the renovation is completed, the campus will have more than 500,000 square feet of office space on 27.6 acres.

Read the full story at the Silicon Valley Business Journal site.

Worker Identity Leads Next Workplace Megatrend

CEOWorld citizen Uday Dandavate is one chief executive whose company won’t occupy a campus and who would never advise anyone else to build one.

Trained in industrial design at the Ohio State University with a focus on learning methods and tools from psychology, anthropology and communications theory, Dandavate advises corporate America. His clients include Samsung, Microsoft, Motorola, Intel, Honda, Hewlett-Packard, Johnson Controls, Kodak and Pepsi.
SonicRim, his company, helps companies see how workers and customers experience their culture and products. “Whenever our customers want to add something new for their customers or make a workplace experience innovation, they come to us to understand the experience of the target audience, so they can improve the idea,” he said.

Read the rest of the story at The Registry.

New Corporate Campuses Shed Dim Light on Workplace Stock

campusAs much effort as has been expended to explain the San Francisco workplace revolution, Silicon Valley workspace is in a jumble, too.

Five of the valley’s most important companies have announced large, expensive new campuses. On their face, the decisions—by Apple, Google, Facebook, Nvidia and Samsung—make two statements: Companies don’t expect to abandon Silicon Valley, but the existing workstock does not meet corporate needs.

Silicon Valley with its historic startup and hardware-engineering business culture has specialized in the vanilla office and workplace building. For landlords, the better to usher in the next company when the last one outgrows your space, gets bought or quietly fails. And venture capitalists aren’t interested in financing fancy.

Read the full story at The Registry.

 

 

 

Vacancy Down in San Francisco Office Market

The San Francisco office market is still the hottest in the country and one of the hottest around the world. The thriving technology sector continues to power the local real estate economy. The economies of agglomeration that have driven technology growth in Silicon Valley over the past 30 years have expanded into San Francisco.

Read the full story at The Registry.

Samsung Jumpstarts North San Jose

samsungSan Jose’s City Council has approved a trio of agreements with Samsung Semiconductor Inc. to build a 680,000-square-foot research and development campus and new North American headquarters in North San Jose.

The project is expected to involve a capital investment of no less than $200 million, assuming an estimated per square foot construction cost of about $300 and excluding the value of business equipment required to outfit the facility.

The campus, which is proposed to include two, 10-story towers, is expected to house 2,000 workers. Samsung has an existing 300,000-square-foot complex at the site, 3655 N. First St., where 370 people already work.

Read the full story at The Registry.

 

 

 

73 Office Buildings Acquired in Silicon Valley

bldgIvanhoé Cambridge Acquires 73 Office Buildings in Silicon Valley with Partners TPG and DivcoWest

Montreal, Quebec, March 20, 2013 – Ivanhoé Cambridge continues to develop its U.S. office portfolio and announces an investment in California’s Silicon Valley region through the acquisition of 73 office buildings in partnership with affiliates of TPG and DivcoWest, who jointly led the transaction which closed in late December 2012.

This opportunistic investment provides the partners with immediate access to 6.4 million square feet of leasable space with a very attractive potential long-term return.

Read the full story at The Registry here.