Sony deal sends smaller Silicon Valley tenants on space hunt
January 6, 2012
By: Mary Ann Azevedo

Studley brokers Michael Petri, and George Fox helped move tenants displaced by Sony’s major San Mateo lease.

There’s a whole lot of displacement going on in Silicon Valley as high-tech expansion continues to fuel demand for growth....

... Examples include Sony Computer Entertainment America agreeing to lease the 450,000-square-foot Bridgepoint Parkway campus in San Mateo in 2012 and Google Inc. signing a lease to take over more than 700,000 square feet in Sunnyvale by 2013...

... Some of the larger tenants being pushed out by Sony moved quickly and found new homes. By year’s end, Guidewire Software and Actuate Corp., which each occupy about 90,000 square feet at Bridgepointe, had secured new homes.

George Fox, a senior vice president and branch manager of Studley’s Silicon Valley office, said property owners tend to prefer leasing large campuses to one tenant rather than smaller, multiple tenants. In this case, property owner The Sobrato Organization may have renewed Guidewire and Actuate’s leases in a softer market. “If the market were slower, they (Sobrato) might have done a lot of little deals,” Fox said. “But the demand was there.”

... Once rumors started swirling that Sony was eyeing the location, Fox and partner Michael Petri took a proactive approach and spoke to their clients about moving sooner than later...

... Fox and Petri helped Actuate move into nearly 60,000 square feet over three floors at an adjacent building on 951 Mariner’s Boulevard, with the move-in scheduled for May 2012...

... Fox said Actuate got a lot of tenant improvement allowance for the new space, owned by Equity Office Properties. On top of that, EOP and Cassidy Turley brokers moved tenants around to accommodate the company... Besides Actuate, Fox and Petri also helped move mobile gaming company Glu Mobile out of the Bridgepointe campus to San Francisco about 18 months ago...

... But not all the campus’ tenants have been so fortunate, Fox noted. “Other tenants didn’t lock up a location in the event someone else came in,” he said. “A lot are scrambling and doing unique deals.” ...

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