Don Reimann, SIOR
Silicon Valley San Jose, CA
October 15, 2015
1, 106,953 SF
Santa Clara Campus Property Owner I,
LLC (SCCPO) acquired an unencumbered
30. 6 plus acre site in Santa Clara, CA from
Applied Materials in 2011.
After 15 months of marketing and coming close but not securing the desired
leasehold, SCCPO, based largely upon the
steadily recovering local economy in the
San Francisco/Oakland/San Jose MSA, decided to move forward and develop three
four story class A office buildings in a campus setting on a purely speculative basis.
They broke ground in 2012 and completed
construction during the summer of 2013.
Total speculative rentable footage was set
at 459,655 SF.
While the first three buildings required ap-
proximately 10 acres to build and provide
surface amenities and a parking lot, there
remained just under 20 acres for additional
speculative development in stages; Phase
II and Phase III.
Silicon Valley’s ever tightening supply of
Class A office space and Santa Clara’s
lower electrical rates allowed Colliers
International to successfully attract the
interest of Palo Alto Networks, Inc (PAN).
PAN’s requirements were to match their
headcount need to their facility demands.
A deal was structured for three 8-story
buildings, and one 2-story amenity and
support building on the Phase III land.
The deal structure timed the watertight
building shell construction, the necessary
interior improvements, and floor by floor
delivery to match PAN’s planned headcount
and growth commitments.
SANTA CLARA CAMPUS
TRANSACTION CASE IN BRIEF
Colliers International represented both parties in the sale
and was then retained under exclusive agency to lease what
SCCPO would build, either to suit or speculatively.