Commercial Real Estate Blog

Cupertino City Center Office Space

Hot Cupertino Office Space Sublease

• Cupertino City Center
• 11,365 Square Feet
• 11 Offices, 5 Conference Rooms, Server Room, & Kitchen
• Plug N’ Play - Furniture and Cubicles in Place
• Great Deal at $2.25 NNN
• Available for sublease to Q4, 2011.

Snell & Co. has acquired a +/- 90,000 square feet office building from Symantec, The three-story building is located at the corner of Torre Avenue and Rodrigues Ave in Cupertino. The building was delivered vacant.

We heard about this sale a few months ago when Snell & Co. tied the site up and was on the hunt for the financing and/or joint-venture partner it needed to conclude the deal. The word is that the sales price was right around $330 per square foot or $30M.

The building is a Class B+ asset, and can be fairly easily demised down into chunks of roughly 15K SF. Market rents for this quality space are in the $2.75 NNN range, with an allowance of $10-15 psf.  The new owners plan on upgrading the common areas, lobby, exterior, and elevator cabs. This building should clean up nicely, but the ceiling heights are a little low (8′-8′5″) to be considered quality Class A space and appeal to everyone. Cupertino is a historically strong market and currently benefits from single digit vacancy rates due to Apple’s voracious appetite for space.

Update: Another broker has emailed us and indicated that asking rents are $3.10 NNN at this project, and that they will demise the spaces down to about 5,000 SF. $3.10 is a fairly strong number for this asset, we’ll see if they can achieve that.

The Apple building at 20605 Valley Green Drive in Cupertino, also known as “Valley Green 6″, caught fire on Tuesday night. It’s not yet clear how much damage the building sustained but it was a 3-alarm fire.

Embarcadero Capital will be going in front of the planning commission later this month to propose a new 155,000 square foot Class A office building in Cupertino. The project will feature three (3), 2-story office buildings alongside a 2-level parking garage.

The project is located at McLellan and Bubb on Results Way. The project is owned by Embarcadero Capital Partners, who picked up the project from Grosvenor in November of 2006. The Results Way Corporate Park consists of roughly 373,000 square feet on 20 acres. Embarcadero Capital paid $62M ($166 psf) for the project.

If the project passes muster with the planning commission later this month, it will move onto the city council in September.

It’s been confirmed that the tenant taking Sand Hill Property companies 60K SF Cupertino Landing office development is Apple Computer. We first heard about the brewing deal early last month. The 3-Story, ~60,000 square foot building was the site of the former Any Mountain sportings goods store. The owners at the peak of the market during the late 90’s were rumored to have been offered about $12M for the site but turned it down. After a number of years sitting vacant and for lease, it was finally re-sold to Peter Pau’s Sand Hill Property Company in 2005. The asking rate was $3.50 NNN, and it’s likely the lease was struck somewhere close to that number. TI numbers are unknown, but based on competing new developments, the number is likely to be somewhere in the area of $35-40 psf over shell.

The next largest chunk of space available for Apple to take down is the Blue Coat Systems sublease that will be available shortly. That 105,000 SF space is located just south of the Cupertino Landing project on North De Anza. Blue Coat Systems acquired the site as part of its acquisition of Packeteer. Blue Coat will be consolidating Packeteer into its Sunnyvale facility, which Blue Coat renewed and expanded its lease with Jay Paul on.

The list below represents the top lease transactions which occurred in Silicon Valley during the second quarter of 2008.

We’ve heard that a single tenant is taking down Cupertino Landing, the 3-story, 59,670 square foot office project developed by Sand Hill Property Company. Sand Hill acquired the 1.66 acre parcel back in 2005 and finished the building in the last quarter. The project which is located at 10495 N. De Anza Boulevard in Cupertino features a single 3-story structure with an above-grade structured parking garage. The project’s asking rate was $3.50 NNN.

It’s not clear who has taken down the space or is in discussions, but given the continued prosperity of Apple Computer and the fact that it hasn’t done much with its campus plans on the other side of 280 make it entirely possible that Apple is the tenant.