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Major Sunnyvale Office Redevelopment Given Thumbs Up

A prolific San Francisco-based developer and a New York-based REIT will have what Google is having.

Moffett Point

Sunnyvale's Planning Commission approved Harvest Properties and W.P. Carey's redevelopment plans for 1389 Moffett Park Drive Monday night, giving the go-ahead for the construction of a new four-story office building in the same Moffett Park neighborhood the search engine giant has already pumped over $1B into.

The site on the corner of Caribbean Drive and Moffett Park Drive holds a 38-year-old, 92K SF industrial office building the development team will demolish to make way for what it has dubbed Moffett Point: a sleek, 124K SF LEED Gold office building with an average floor plate of 35K SF, according to planning documents. 

On a smaller scale, Harvest and W.P. Carey will be joining Google and developer Jay Paul in the now-sprawling business district known as Moffett Park. On top of Google's investment there, Jay Paul's massive 1.8M SF Moffett Towers II is fully pre-leased by Facebook and Amazon.

Nearby is Peery Park, another transforming Sunnyvale business district, and another area San Francisco-based Harvest Properties is developing. The company is partnering with Invesco there on a 560K SF office campus. 

Moffett Point interior tenant space rendering

Sunnyvale's 11M (and counting) SF of inventory leads all of Silicon Valley except for San Jose, and its vacancy rate (3.8%) and average asking monthly rent per SF ($6.43) distinguish it from Silicon Valley averages of 10% and $4.70 per SF, respectively, according to Q2 2019 Cushman & Wakefield data. 

For its part, Moffett Point will include three rooftop terraces, a BBQ and outdoor kitchen, and fitness stations, among other amenities. The architect for the project is RMW architecture & interiors.

Neither Harvest Properties nor W.P. Carey responded to requests for comment. 

Harvest has over 10M SF of Bay Area office, industrial and R&D space under management and has executed $3B of transactions since its founding in 2002. 

W.P. Carey is a net lease REIT with a portfolio of over 1,100 properties and has a market cap of almost $15B as of the writing of this story. 

With design review approval secured, there is now a 15-day appeal period for the project, after which building permits can be submitted by Harvest Properties and W.P. Carey to the Planning Commission for review. 

CORRECTION, September 11, 10:30 P.M. PT: Harvest Properties is based in Oakland. A previous version of this story misstated where the company is based. This story has been updated.