Behind the Deal: TMG Scores Big In SJ
Yesterday, Silver Spring Networks revealed plans to move into Champion Station, half a mile from Levi's Stadium in North San Jose. We got word today another big tenant is joining them. It's ForeScout Technologies, which is relocating from Campbell into 95k SF at 190 West Tasman. TMG purchased the eight-building, 810k SF campus on Tasman Drive from Cisco Systems less than two years ago and recently completed a big redo. Silver Spring Networks will also relocate from Redwood City under a 190k SF deal at 210 and 230 West Tasman, according to an SEC filing this week. Here are exterior and interior pics of Champion Station.
Sources say ForeScout plans to move in ASAP next year. They were attracted to the high-profile, renovated two-story building and the ability to get their own visibility and signage. Now the firm sits in a six-story multi-tenant building on one floor, and the chance to start over and have their own building was important. This lease lets them rebrand with good signage, and word is they will go for creative high-end interiors. A couple of other big leases of similar size will be inked before year's end, predicts one broker source.
Here's South Bay Development Co partner Mark Regoli, who started his 237@First office park in North San Jose this year. What do these two latest leases mean for the market? We asked Cushman's Silicon Valley senior research analyst, James Masuda, who says while they're definitely newsworthy deals, the North San Jose submarket closed Q3 with a vacancy of 10.9%, which is roughly 4M SF of available space. Combine these recent deals with a few that are in progress and a couple of larger tenants looking at North San Jose (and despite some larger spaces added to the market in Q4), the submarket could close the year with a vacancy near 9%.