Five9 leases space in Bishop Ranch complex
SANRAMON>> Five9, a tech company buoyed by rising revenues, has signed a big lease in San Ramon’s Bishop Ranch Business Park in a deal that serves as a welcome counterpoint to the economic woes unleashed by the coronavirus.
The cloud services company signed a lease with an affiliate of Sunset Development, which is the principal owner and developer of the Bishop Ranch office, retail, restaurant, and hotel complex in San Ramon.
San Ramon-based Five9 said it has signed a lease to occupy 104,000 square feet at 3001 Bishop Drive, a Securities and Exchange Commission regulatory filing shows. JLL, a commercial real estate firm, represented Five9 in the rental deal, according to the SEC documents.
Five9, which provides cloud computing software for data collection centers, anticipates that it will begin its lease in February 2021, according to a copy of the rental agreement that was filed with the SEC documents.
“The company expects to use the premises as its new corporate headquarters,” Five9 stated in the SEC filing.
Over the 12 months that ended in June, Five9 lost $24.3 million on revenue of $370.9 million, according to the Yahoo Finance site. For the calendar year 2019, Five9 lost $4.6 million on revenue of $328 million.
The new Five9 offices represent a big chunk of the vast 2600 campus that
Sunset Development coowns with insurance titan MetLife.
At present, Five9 leases 90,000 square feet at 4000 Executive Parkway, an office building that also is in Bishop Ranch.
“A major lease in today’s market is absolutely a sign of optimism about the need for quality office space,” said Jeffrey Weil, an executive vice president with Colliers International, a commercial real estate firm.
The deal arrives at a time when commercial real estate markets throughout the nation and in the Bay Area have turned sluggish due to uncertainties about how the coronavirus, increased instances of working from home, and social distancing protocols might affect the corporate appetite for office space.
The starting lease rate in the Five9 deal is $3.50 a month per square foot, the SEC filing stated. That’s 11.8 percent higher than the average office rent of $3.13 a month per square foot in the Tri-Valley market of Pleasanton-DublinSan Ramon-Livermore.
The final year of the lease deal will require Five9 to pay $4.57 a square foot per month, the rental agreement revealed.
Five9 agreed to a 10year lease with Sunset Development and is taking two floors in the 3001 Bishop Drive office building, the SEC filing shows.
“This deal shows a real commitment by Five9 to San Ramon and the TriValley,” Weil said.