SAN JOSE — Netgear has struck a deal that may allow the technology company to maneuver its headquarters to a constructing in north San Jose that has been vacant for years.
The move might be seen as a successful final result for an office site that was the centerpiece of a loss-making odyssey for the property's previous owner, the Santa Clara County Housing Authority.
San Jose-based Netgear has leased your entire 89,400 square feet of the two-story office constructing at 3553 North First St., in line with sources acquainted with the lease. The company's current headquarters has a complete area of around 13,000 square meters.
Newmark business real estate brokers Joe Kelly and Jon Mackey have been in search of tenants for the constructing on the corner of North First Street and Rio Robles.
“The global networking and internet connectivity company will move into the building in October 2025 when its lease at 350 East Plumeria Drive in San Jose expires,” Newmark said in a report.
Netgear's lease is available in the wake of an actual estate fiasco involving errors by the Santa Clara County Housing Authority, which had problematic ownership of the property.
In 2020, the housing authority paid $37.35 million for the office constructing, in line with a staff memo issued across the time of the acquisition by the authority, whose primary mission is to support and encourage the creation of reasonably priced housing .
The county board's missteps were so notable that the Santa Clara County grand jury investigated the matter and issued a scathing report titled “Flawed Information, Flawed Decisions.”
The report focused on the housing authority's botched efforts to purchase and sell the office constructing. At one point, the housing authority had considered the constructing as a future headquarters.
In 2022, the Housing Authority sold the constructing for $24.5 million, in line with documents filed with the Santa Clara County Recorder's Office.
Alvarez & Marsal Capital Real Estate purchased the constructing through an affiliate in money. The purchase price was so low that Alvarez & Marsal Capital was in a position to spend money on a lot of upgrades.
The ownership group upgraded and modernized the lobby, renovated the café area and improved the outside. The property also includes half a hectare of open space.
This deal and other recent office transactions show that technology firms and other corporations want to lease space in Silicon Valley. Recent high-profile South Bay leases announced in only the previous couple of weeks include:
– Snowflake has entered right into a sublease agreement for 773,000 square feet of office space in Menlo Park.
– Amazon agreed to an actual estate transaction to utilize 217,000 square feet of office space in Mountain View.
– Nvidia has leased 101,600 square meters in northern San Jose.
“It's good that companies are doing deals now,” said David Sandlin, executive vp at Colliers.
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