Hudson Pacific Lands Big Tenant In San Francisco, Looking For Another In Silicon Valley
Hudson Pacific Properties is having a busy 2017 in the San Francisco Bay Area. It just signed a 10-year lease with Google for 166,460 SF at Rincon Center II office tower on Spear Street in San Francisco.
Hudson Pacific also is gearing up to reposition its Milpitas property with Cisco vacating the entire campus at the end of 2017.
Google's new lease will commence in March 2018. It will help cover two significant leases expiring this year, including 132K SF from AIG and 22K SF from Dentons. CBRE has been leasing this property.
The tech giant has been expanding throughout the Bay Area of late and has proposed to build a canopy-like campus in Mountain View.
Rincon Center consists of two five- and six-story Class-A office towers with ground-floor retail.
Construction on Hudson Pacific's 471,580 SF Campus Center in Silicon Valley will begin January 2018.
“Demand for high-quality office space remains strong in Silicon Valley, and we’re tracking multiple users in the market with requirements in excess of 400K SF,” Hudson Pacific Properties chairman and CEO Victor Coleman said. “We view this lease expiration as an opportunity to engage with another large tenant like Cisco or find several large tenants for the property.”
Renovations will be done to the entrance and lobby. The repositioning will include more than 100K SF of market-ready office space, master planned landscaping and enhanced outdoor recreation areas, such as sporting areas, patios, collaborative seating and direct hiking access. The improvements are designed by architect NBBJ and interior designer Shlemmer Algaze Associates. Cushman & Wakefield will market the property for lease.
Campus Center at 115-155 North McCarthy Blvd. has three office and R&D buildings with the ability to add up to 1M SF of additional office, R&D, warehouse or manufacturing space. The 65-acre property is close to public transit and the I-880 and 237 freeway interchange.
Hudson Pacific received $10.4M from Cisco’s early termination and it will write off about $5.9M of non-cash items, which will result in net amortization beginning Q2 2017 of $1.5M through the remainder of the year.
Hudson Pacific’s portfolio includes six properties and 2.2M SF in San Francisco and 7.3M SF in Silicon Valley.