Seagate Selling Its 575K SF Campus In Silicon Valley But Wants To Lease It Back
Seagate Technology Holdings is looking to sell its Fremont headquarters for $300M and lease it back following its announcement last month that it will reduce its staff count by 8%.
Cushman & Wakefield listed the 574K SF, two-story campus at 47488 Kato Road for Ireland-based Seagate, the San Francisco Business Times reported. Seagate wants to lease the property back for at least seven years.
"Seagate is highly committed to our employees, suppliers, and customers in the Bay Area and across our global footprint," a spokesperson told the Business Times in an email. "As part of our ongoing efforts to optimize our capital assets and opportunities for reinvestment, Seagate is exploring selling the Fremont site with a long-term lease back; the site will continue to be a center of excellence for R&D, innovation, and multiple business functions."
The property sits on 31 acres, with 11 acres undeveloped.
Seagate announced the staff cuts last month, equivalent to about 3,000 jobs. The company is also looking to divest 400K SF in Colorado. The company purchased the Fremont property in 2013 for $90M, according to the San Francisco Business Times.
Although the Bay Area tech segment has been struggling in recent weeks due to a number of layoffs, office demand in Silicon Valley has been a lone bright spot, with steady buyer interest and some sizable transactions.