Meta Inks Massive Sunnyvale Lease In First Deal Since Rebranding From Facebook
Meta, formerly Facebook, has signed a 719K SF lease in Sunnyvale, California. The Silicon Valley deal is the largest private sector lease in the U.S. in 2021, according to Facebook’s new landlord, Tishman Speyer, which announced the deal Wednesday.
Tishman Speyer acquired the Class-A office campus earlier this year for a reported $365M. Meta is set to occupy the entirety of the four-building complex situated in the Moffett Park neighborhood.
“Silicon Valley remains the global center of innovation and its importance will continue to grow even as other innovation hubs emerge,” Tishman Speyer President and CEO Rob Speyer said in a statement.
The news comes about a month after San Francisco’s largest landlord, Boston Properties, hinted at the looming deal, with CEO Owen Thomas claiming the tech giant was looking to add about 700K SF in Silicon Valley. The lease is a significant sign of strength for the Bay Area office market, which has struggled to recover in the wake of the coronavirus pandemic.
Boston Properties’ Bay Area properties were about 18% occupied last quarter in terms of actual office usage, the lowest in the company’s portfolio, the company said in an October earnings call.
Newmark’s Phil Mahoney, Michael Saign and Jon Mackey represented Tishman Speyer in the Sunnyvale deal.
“We were always convinced that the tech sector would maintain a strong appetite for high-quality collaborative spaces and are excited Sunnyvale will house one of the world's leading companies,” Speyer said.
In the earnings call, Thomas also hinted at a potential deal for TikTok’s parent company, ByteDance, which is looking for up to 300K SF in Silicon Valley. The firm, which last month signed its first lease in Washington, D.C., has also partnered with Tishman Speyer, buying 2.6M SF in Shanghai from the developer over the summer. ByteDance acquired four under-development buildings for a future regional headquarters, according to The Real Deal.