MENLO PARK — A tech firm has signed a mammoth workplace deal within the South Bay, a transaction that’s poised to offer an enormous increase for the area’s financial system, job market and industrial actual property sector.
Snowflake has subleased 773,000 sq. ft in Menlo Park, taking workplace buildings close to the interchange of U.S. Freeway 101 and State Route 84, in response to a number of sources with shut information of the rental transaction.
100 Independence Drive, a Menlo Park workplace constructing. (Google Maps)
Fb app proprietor Meta Platforms subleased the house to Snowflake, in response to the sources.
The 773,000 sq. ft that Snowflake subleased from Meta is sufficient workplace house for 3,000 to three,800 employees.
JLL industrial actual property brokers Mark Bodie, Toss Vallentine, Clarissa Richardson and Todd Husak; and CBRE industrial actual property brokers Luke Ogelsby, George Fox and Nick DeMartini teamed as much as prepare the sublease deal.
Actual property specialists imagine the deal will present a significant increase for the South Bay industrial property sector, which is reeling from sky-high workplace vacancies, sluggish rental charges and widening mortgage delinquencies.
“This is good for the market,” stated David Sandlin, an government vice chairman with Colliers, a industrial actual property agency. “Leasing activity breeds more activity.”
It wasn’t instantly clear when Snowflake may transfer into the workplaces that it has subleased.
“This is such a positive event for the economy in Silicon Valley,” stated Chad Leiker, a primary vice chairman with Kidder Mathews, a industrial actual property agency.
Montana-based Snowflake has been increasing its operations within the Bay Space in recent times.
In 2022, Snowflake signed a lease within the East Bay for 153,000 sq. ft at an workplace web site in Dublin.
“The Menlo Park deal shows that this is a great time for companies to be looking for offices,” Leiker stated. “Landlords and tenants are both motivated to lease or sublease their spaces.”
Snowflake has been in search of house past the 200,000 sq. ft that it at present occupies in San Mateo, acknowledged The RegistrySF, an actual property information web site that was the primary to report that Snowflake has reached a sublease deal in Menlo Park.
The deal arrives at a time when it seems extra tenants are in search of bigger workplace areas of 20,000 sq. ft or extra to occupy.
“We are seeing a 25% to 30% increase in requirements by these larger tenants,” Sandlin stated. “You could see more of these larger deals.”
This information group requested a remark from Snowflake concerning its rental deal in Menlo Park. JLL dealer Bodie declined to remark concerning the transaction.
What is for certain is the Snowflake rental deal in Menlo Park is a welcome counterpoint to the forbidding tendencies which have haunted the Bay Space workplace markets because the coronavirus outbreak and ensuing enterprise shutdowns that started in March 2020.
“This is a big deal,” Leiker stated. “Everyone has been singing the sad song about the office market in Silicon Valley. Now somebody comes along and takes three-quarters of a million square feet. That puts a nice dent in the vacancies.”
