Posted by: BayAreaComRE | April 2, 2010

Confirmed: McAfee Signs Large Lease Expansion in Santa Clara

Multiple media outlets are reporting on the confirmed lease signing by McAfee at two Sobrato Development Co. owned towers ins Santa Clara, 2811 Mission College for 200,454 SF and 2821 Mission College for 41,000 SF which were the former Yahoo Headquarters buildings. We have also confirmed that the “effective” or average contract rate over the term is roughly $1.86 per square foot per month on a 10 year lease term. Tenant Improvement allocations have not yet been confirmed.

From The Registry: “Network and systems security provider McAfee Inc. has signed the largest Silicon Valley lease of the first quarter. The same sources said McAfee also has signed an option agreement to lease another 40,000 square feet from Sobrato in the same complex in the next 60 days. The two buildings are separated by less than a mile from McAfee’s current Santa Clara headquarters at McCandless Towers. McAfee has three years remaining on 200,000 square feet in the distinctive, two-building McCandless complex, which belongs to Shorenstein Properties. San Francisco-based Shorenstein acquired the 419,000 square feet earlier this year after Tishman Speyer Properties failed to restructure their debt.” We reported on this story a while back, click here to revisit.

Good to see some positive absorption in Silicon Valley. Vacancy was in the 20% range for quite some time so seeing this type of activity puts a positive spin in the Valley that companies with financial wherewithal are now seizing available well priced opportunities.

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Responses

  1. Hopefully this is a sign of more positive things to come, as it is a large investment. Anything to absorb the massive vacancy rates has to be a good thing! Maybe it will get the ball rolling slowly in the right direction.

    • This is a great sign in that companies are starting to see the economic opportunities in this market and also gaining confidence in their own business plans. Thanks for the comment!


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