CAMPBELL, CA–8×8, the cloud communications company, has put its 178,000 square foot Silicon Valley headquarters on the sublease market.
The technology company is seeking one or more sub-tenants for the space it currently occupies as the sole tenant of the five-story building at 675 Creekside Way in the San Jose suburb of Campbell.
The building is owned by New York-based JOSS Realty and Australian private equity firm Qualitas, which acquired it in March 2020 – a year after it opened – for $139 million. JLL markets subletting.
According to marketing materials for the sublease offer, the building is available until December 31, 2030, when the 8×8 lease expires, and divisible by floors, with asking rents negotiable.
The sublease offering for 675 Creekside is the second listing for significant office space in the San Jose market in the past two months. In August, Netflix listed a 165,000 square foot office campus in nearby Los Gatos.
The streaming company is seeking one or more sub-tenants for The Sobrato Organization’s two-building office and research complex at 100 and 150 Winchester Circle. The space is available for sublease until November 30, 2027, with the balance remaining on the Netflix lease.
In a recent income statement, Netflix — which has a 450,000 square foot headquarters in Los Gatos — announced an $80 million writedown as part of its exit strategy for some of its leases, indicating that the reduction of its footprint is still in progress. .
CRE investors will keep their eyes peeled to see if the rise in subletting activity by tech companies leaving their footprints represents a contagion of the trend that has plagued the San Francisco office market since the start of the year.
According to Cushman & Wakefield, the Silicon Valley market had an inventory of 3.7 million square feet of sublease space at the end of the second quarter, about three-quarters the size of the footprint. sublease in San Francisco. The 3.7 million available sublease space represents a 32% increase from the first quarter of 2021, C&W reported.
Office occupancy levels in San Francisco still languish below 40%, according to the latest weekly return-to-work barometer from Kastle System, a survey of office entry passes in 10 U.S. cities, several major players in technology heralding reductions in their footprint as they embrace hybrid working.
The list of tech companies downsizing in San Francisco includes one of the city’s largest employers: Salesforce.
The tech giant, headquartered in San Francisco – where it occupies two office towers bearing its name – announced in July that it was offering to sublet approximately 412,000 square feet of the 817,000 Salesforce West tower. square feet and 43 stories on Fremont St., GlobeSt. reported.
Salesforce will retain ownership of the building and may reoccupy the space in the future, a Salesforce spokesperson said in a statement. Approximately 352,000 square feet of the sublease listing will be available on August 1, with the remainder released in December.