March 17, 2009
About two weeks ago we noted that Symantec had plans to sell off its Cupertino assets, and relocate to Mountain View. At the time it made a lot of sense to us that Symantec (SYMC: 22.73 +1.79%) would make this move, because it could also take advantage and lockup space at the adjacent (former) Mercury Interactive/HP (HPQ: 25.44 +1.11%) campus (flyer below) available for sublease (on leases through 3/26/2013 and 2/20/2014).
We’ve now heard that Symantec is in fact taking down part or all of the Mercury Interactive campus. The entire campus is some 447,553 square feet, a number very close to the 443,000 square feet that Symantec’s remaining Cupertino assets amount to. We’re not sure whether the deal has actually been inked yet or not, but I would surmise that Symantec probably got a screaming deal. Officially, Mercury/HP was seeking $1.75 NNN on the space. Realistically, the Symantec deal will probably get done at half that.
If they do take the entire campus, that would likely be enough to push Mountain View’s overall office and R&D vacancy rate (for buildings that are used primarily as office) into or close to the single digits. I would try to single out office and R&D vacancy rates, but they are meaningless unless you have a standard by which to judge buildings by (I would be willing to be that every single brokerage house and data provider probably vastly different number for Mountain View’s Q4 vacancy rate for office).
The building’s which comprise the campus include:
- 464 Ellis Street – 64,108 SF
- 466 Ellis Street – 75,233 SF
- 468 Ellis Street – 55,662 SF
- 389 Whisman Road – 63,998 SF
- 399 Whisman Road – 59,617 SF
- 369 Whisman Road – 62,218 SF
- 379 Whisman Road – 66,717 SF
- Symantec Ditching Cupertino?
- MySpace/Fox Interactive Highlights Trend
- Avaya Brings Online 140,000 Square Feet of R&D and Office Space For Sublease in Milpitas
- Snell & Co. and RREEF Purchase Cupertino Office Building From Symantec
- Speculative Building in San Francisco Returns in a Big Way