San Jose Tech Company Set to Grow Its Real Estate Footprint

Aerial view of San Jose at night

Supermicro, an information technology storage and solutions company based in San Jose, is set to close a deal this month to purchase nearly 294K SF in northern San Jose, according to filings with the Securities and Exchange Commission.

Supermicro, which specializes in servers and solutions for running and storing data, will pay Caracol Property Owner LLC $80M for the property, according to the filings.

The new campus will be located at 550 Brokaw Road, where Supermicro leases warehouse space, as first reported by the San Francisco Business Times. Caracol Property Owner is an affiliate of local developer Bay West Development, the Business Times reported.

Under the lease terms, Supermicro could redevelop the property with phased construction of seven office buildings totaling 1.9M SF, in addition to two parking structures spanning 1.6M SF.

The company plans to use the site initially for warehousing and production as an expansion of its current campus, Supermicro told Bisnow in a statement.

The news comes after Supermicro reported record revenue results in its most recent earnings call, as the artificial intelligence boom is driving business for the company.

“While we continue to win new partners, our current end customers continue to demand more Supermicro’s optimized AI computer platforms and rack-scale Total IT Solutions,” Charles Liang, president and CEO of Supermicro, said in a news release.

AI drove some of the largest real estate deals in the Bay Area office market in the fourth quarter, with companies like OpenAI and Anthropic signing leases for office space. OpenAI signed a sublease deal in Mission Bay for part of Uber’s office space, the San Francisco Chronicle reported.

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