Report: Splunk eyes larger lease at under-construction Santana Row office development

Silicon Valley Business Journal

Posted In — News & Press | In the News

Software company Splunk is close to signing a lease for an entire 284,000 square fee-square-foot, under-construction development next to the open-air Santana Row shopping center, the Mercury News reports, citing sources with knowledge of the pending deal.

The San Francisco-based company is reportedly slated to lease all of 700 Santana Row, a massive office and retail project by developer Federal Realty, which also built the booming shopping center next door. Splunk is currently in about 235,000 square feet at nearby 500 Santana Row, another Federal Realty project.

Splunk told the Mercury News that as of Thursday, it had not signed a lease for the 700 Santana Row space, which is one of San Jose’s largest construction projects, but that “we do love our office on Santana Row.”

When complete, 700 Santana Row will include 284,000 square feet of office space and 29,000 square feet of ground-floor retail. The Business Journal earlier this year got a sneak peek of the under-construction building, which is slated to open in parts over 2018 and the first half of 2019.

Splunk makes software for for searching, monitoring and analyzing machine-generated data and has about 3,200 global employees, according to company filings. Its current Santana Row office could accommodate as many as 1,200 employees, based in typical ratios for workers per square foot, while the 700 Santana Row space could hold as many as 1,400, the Mercury News noted.

“Splunk is a fast-growing company and although they are based in San Francisco, they decided to take a chance in a major way on San Jose opening an office there,” Chad Leiker, first vice president with Kidder Mathews, told the Mercury News.

Newmark Knight Frank brokers Todd Shaffer, Randy Gabrielson, Tracey Solari and Armand Tiano arranged the lease, according to the Mercury News, though the brokers did not respond to requests for comment for that story.

Santana Row building boom
Federal Realty has a lot of projects in the works around Santana Row. Along with 700 Santana Row, it’s working on a redevelopment project called Santana West and a proposal for hundreds of additional apartment units near its signature shopping hub.

The shopping center itself has been undergoing a major retail revamp, with Federal Realty bringing in a host of new restaurants and retailers over the last year or so, including Amazon Books, SoulCycle and Mendocino Farms. The complex includes about 2 million square feet of commercial and residential space, 50 different retailers, 30 restaurants, a 215-room boutique hotel, a 7,000-square-foot fitness center and more than 830 residential units.

Federal Realty is also moving forward on Santana West, an approximately 13-acre mixed-use development across the street from the shopping center. The developer has entitlements to build about 1 million square feet of office space on the property, which is today home to a trio of old and historic domed theater buildings, and indicated recently that it plans to move forward with a preliminary application to redevelop the property.

Earlier this year, Federal Realty also proposed building 300 new apartments on a 3-acre near the shopping complex.

– Silicon Valley Business Journal reporter Janice Bitters contributed.

For the full story, go to the Silicon Valley Business Journal.

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