Airbnb signs big lease in Santa Clara, sets stage for major Silicon Valley job hub
Home rental firm to make campus its permanent home
SANTA CLARA » Airbnb, in a move that would create a major Silicon Valley job hub, has leased two large office buildings in Santa Clara, a fresh indicator of a hot South Bay property market.
The online marketplace for hospitality services has leased 300,000 square feet in two large buildings on Great America Parkway in Santa Clara, according to Airbnb and several realty experts with knowledge of the deal.
“We are excited to establish a permanent home in the South Bay that builds on our commitment to help create high- quality jobs that support the Bay Area’s economy,” Airbnb said
Thursday.
The buildings that Airbnb leased are at 4301 and 4401 Great America Parkway near the intersection with Mission College Boulevard, a short distance from Levi Stadium.
Each of the office structures is approximately 150,000 square feet in size.
The offices have a striking look and feature a series of terraces and a bridge that connects the two buildings.
The Sobrato Organization, a legendary development firm, owns the two buildings. Chase Lyman, a top executive with Sobrato, declined to comment.
CBRE, a commercial real estate firm, represented Airbnb in its lease negotiations. CBRE brokers declined to comment.
Palo Alto Networks at one point had been a tenant in the two office buildings. However, the fast-growing tech firm decided to undertake major leases elsewhere in Santa Clara.
In the wake of completing other leases, Palo Alto Networks offered the 4401 and 4403 Great
America Parkway offices for sublease.
Ultimately, brokers from commercial realty firm Newmark Knight Frank successfully terminated the Palo Alto Networks original lease to help pave a smoother path for the eventual Airbnb rental deal.
San Francisco- based Airbnb could potentially employ 1,500 people in the two office buildings, based on typical ratios for employees per square foot.
Tech companies based in
San Francisco have at times leased big chunks of office space in Silicon Valley in a quest to place operations closer to where skilled tech workers reside.
Splunk has established a big employment hub in two large office buildings at San Jose’s Santana Row, while Uber has leased two big office buildings in Sunnyvale.
Experts believe the Airbnb leasing deal is just the latest sign that the Silicon Valley office market, bolstered by a hot employment sector, remains robust.
Privately held Airbnb generated revenue of $2.5 billion and posted profits of $93 million in 2017, Bloomberg News and Reuters have estimated.
Last September, Airbnb disclosed that it generated revenue that topped $1 billion for the second quarter of 2019 but didn’t officially provide full-year revenue for 2019.
Airbnb is expected to launch an initial public offering of its stock sometime in 2020, according to some tech and financial analysts. Airbnb offers homestays, hospitality services, lodging, and tourist services through a combination of web sites and mobile apps.
For about a year now, Airbnb has occupied a We
Work location in San Jose.
The new Santa Clara offices will become part of an Airbnb network of regional offices on five continents.
This will serve as a twobuilding campus that will be delivered to Airbnb in two phases. The first phase is expected to open in early 2021 and the second phase is estimated to open in 2024, Airbnb said.
“This expansion will allow us to tap into the region’s robust talent pool as we continue to grow our team and business,” Airbnb said.