ServiceNow sets plans for big expansion
Cloud-based provider leases space for more than 1,000 employees
SANTA CLARA >> ServiceNow, a fast-growing Silicon Valley tech company, is busy laying plans for a big expansion of its headquarters in Santa Clara, the company said Wednesday.
The cloud-based provider of software and services for information technology, human resources, customer relations, and security operations has leased from
The Sobrato Organization a yet-to-be-constructed office building that would be big
enough to accommodate well over 1,000 employees.
“ServiceNow is growing quickly and adding employees around the world,” said Robert Teed, ServiceNow’s vice president of Real Estate & Workplace Services. “Here in Santa Clara, because of that growth, we are expanding our headquarters campus.”
ServiceNow has leased roughly 269,000 square feet from Sobrato, enabling the company to expand into an office building that’s expected to begin construction in early 2019, ServiceNow said.
The tech company had previously leased two office buildings that together total roughly 329,000 square
feet, along with an amenities building, from Cupertino-based Sobrato, a rental deal ServiceNow struck in 2014. Each building totals approximately 165,000 square feet. These buildings are at 2215 and 2225 Lawson Lane just north of Central Expressway in Santa Clara.
To launch the next stage of its expansion, ServiceNow has leased a third building that would rise on an adjacent 7.5-acre parcel of empty land on Lawson Lane, a rental deal that begins in 2021, when the building is due to be completed, and expires in 2035. In addition, ServiceNow agreed to extend its lease on the original two buildings through early 2035.
Separately, the company is leasing a 130,000-squarefoot building on Jay Street in Santa Clara, a four-minute drive from the main campus on Lawson Lane.
“ServiceNow has called the
Bay Area home since moving our headquarters here from San Diego in 2014,” Teed said.
Executives with Sobrato declined comment about the ServiceNow expansion efforts.
Several tech titans, including Apple, Adobe Systems,
Facebook, Google and Amazon, have launched, or are actively planning, an array of major expansions in several Silicon Valley cities, including San Jose.
The ServiceNow expansion underscores that medium-sized and smaller
tech companies also have mounted significant growth efforts of their own amid a red-hot South Bay economy that has produced major hiring efforts throughout Silicon Valley and adjacent regions such as San Francisco and the East Bay.
The three existing buildings, by applying employeespace ratios typically used for modern office structures, could in theory accommodate 2,300 employees.
The company didn’t specify any totals for its Bay Area staffing levels. In a regulatory filing in August, ServiceNow stated that as of the end of June, its total employee headcount was 7,150, compared with 5,571 at the end of June 2017. That’s a 28 percent increase over the one-year period.
The expansion into the third building could accommodate 1,300 more employees.
“Over the next few years, we expect to increase our workforce in Santa Clara to several thousand people,” Teed said.