Silicon Valley Office Asset Lands 300 KSF Tenant

Federal Realty Investment Trust signed software company Splunk Inc. to a 319,000-square-foot lease in its new Class A building, scheduled to open in 2019.
700 Santana Row
700 Santana Row

Federal Realty Investment Trust has signed Splunk Inc. to a 301,000-square-foot long-term lease at 700 Santana Row. The upcoming 319,000-square-foot, Class A office building in San Jose, Calif., is expected to be ready sometime next year.

“In our marketing of 700 Santana Row, we heard from tenants in the Silicon Valley office market as well as from Splunk that the offering here is equal parts a fantastic building and its mixed-use, amenitized neighborhood,” Jan Sweetnam, Federal Realty’s senior vice president & West Coast COO, told Commercial Property Executive. “Recruiting and retention are a top concern for mid- to smaller Silicon Valley firms competing with the Googles and Facebooks who have big campuses, lunch rooms, massages and the like.”

Therefore, as Federal Realty finished negotiations with Splunk for 700 Santana Row, which adds to their existing full-building at 500 Santana Row, the software company mentioned the benefits of being in the area had exceeded its expectations these past two years. “Splunk took occupancy of the 235,000 square-foot 500 Santana Row in 2016. Their CFO said with this week’s new lease that they’re proud to have great places where employees can work like Santana Row,” Sweetnam said. “We see every day how they and our other office tenants take advantage of the built-in campus with numerous choices for lunch, dinner, or after work socializing, a place to work-out, dozens of shops and services and a hotel that accommodates meetings and overnight stays for customers and vendors.”

Jan Sweetnam
Jan Sweetnam, senior vice president & West Coast COO, Federal Realty Investment Trust

700 Santana Row offers seven levels of office area above ground floor retail, and a parking garage with nearly 1,300 spaces. An all-concrete structure, the property is designed by WRNS architects and boasts 13-foot ceiling heights, a modern glass curtain wall, private terraces and a world-class urban plaza. It is also built to LEED Silver standard. 

“The ‘instant campus’ at Santana Row offers employees immediate access to world-class amenities including a hotel, residences, community fitness, shops, restaurants, a theatre and public spaces which, taken together, equal a recruiting and retention advantage for companies,” Sweetnam said.

With this new lease, Santana Row office space is 100 percent leased to firms such as Cushman & Wakefield and Newmark Knight Frank, worldwide information-services company Cisco, AvalonBay apartment REIT, healthcare provider Satellite Healthcare, credit reporting company Experian and others.

The property’s location in San Jose has adjacent access to highways 280, 17 and 880, and a new shuttle will tie in to the regional transit hub at Diridon Station.

Burgeoning Area

Santana Row also consists of 50 shops, 30 restaurants, 9 personal service businesses, 615 rental apartments, 219 residential condominiums and a 215-room boutique Hotel Valencia. The three properties on Santana Row—700 Santana Row, 500 Santana Row and 300 Santana Row—along with other mixed-use buildings, ups the total office space at Santana Row to 690,000 square feet.

Federal Realty is already starting work on an adjacent site, Santana West, which is approved for 920,000 square feet of office space. In May, Federal Realty Investment Trust teamed with Grass River Property and Comras Co. in the redevelopment of CocoWalk, an open-air shopping plaza in Miami, Fla. The new 250,000-square-foot mixed-use property will include One CocoWalk—an 85,000-square-foot office building.

Images courtesy of Federal Realty Investment Trust