Splunk Santana Row lease would expand tech company's San Jose foothold

The Mercury News

Posted In — News & Press | In the News

SAN JOSE – Splunk has fashioned a deal that would enable the fast-growing tech company to expand its presence at San Jose’s bustling Santana Row mixed-use complex.

The technology company has agreed to lease the entire 700 Santana Row office building. When completed, the building is expected to total 284,000 square feet, according to several people with knowledge of the leasing agreement. 700 Santana Row is under construction in the southern section of the retail, restaurant, residential, hotel and office complex.

San Francisco-based Splunk already occupies a 235,000-square-foot building known as 500 Santana Row that it leased in 2015.

The new 700 Santana Row offices that Splunk is leasing, in an expansion, are near the company’s current offices. The CineArts movie theater is between the two office buildings. Newmark Knight Frank brokers Todd Shaffer, Randy Gabrielson, Tracey Solari and Armand Tiano arranged the lease. NKF brokers didn’t respond to requests for a comment.

Federal Realty, developer and principal owner of Santana Row, has also disclosed this month that it’s decided to push ahead with preliminary plans to build a huge office campus across the street, near the Winchester Mystery House and the now-closed Century 21 domed movie theater.

Federal Realty intends to develop three big office buildings totaling 850,000 square feet, along with a parking garage, in a project that would preserve the Century 21 structure near the corner of Winchester Boulevard and Olsen Drive.

A tenancy that fills the 700 Santana Row building would gobble up the remaining major chunks of office space available in Santana Row.

In an email Wednesday, Splunk said a lease hadn’t been signed as of that time.

Over the 12 months that ended in April, Splunk generated $1.36 billion in revenue, Yahoo Finance reported.

“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,” said Chad Leiker, first vice president with Kidder Mathews, a commercial realty brokerage.

Regulatory filings show that at the end of January, Splunk employed 3,200 people worldwide, up 18.5 percent from its workforce of 2,700 on Jan.31, 2017.

Splunk went public in an initial stock offering priced at $17 in 2012. The company’s shares closed at $105.36 on Thursday. The company’s software seeks out, collects and analyzes an array of data.

“We do love our office on Santana Row,” Tom Stillwell, a Splunk spokesman, said in an email to this new organization.

The 500 Santana Row offices could potentially accommodate 940 to 1,200 Splunk employees, based on typical ratios of square feet per employee. The 700 Santana Row building could contain 1,100 to 1400 workers.

“People want to be in places that have great amenities like Santana Row,” said Bob Staedler, principal executive with San Jose-based Silicon Valley Synergy, a land-use and planning consultancy.

For the full story, go to The Mercury News.

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