Federal Realty Signs 141 KSF Office Tenant

The building is part of a 1 million-square-foot Bay Area campus.

London-based PwC US Group LLP has signed a long-term lease for 141,000 square feet at the One Santana West office building in San Jose, Calif. The tenant plans to move into its new offices in early 2026. This new commitment brought the eight-story building to 50 percent occupancy.

The leasing negotiations began in September as PwC decided to relocate from 488 S. Almaden Blvd. in downtown San Jose, according to The Real Deal. At the time, the firm had also shown interest in an office property in downtown Sunnyvale, Calif.

Part of the Santana West office campus

One Santana West is part of a 1 million-square-foot office campus developed by Federal Realty Investment Trust. The REIT broke ground on the first phase of the project in 2019 and topped out two years later. The 376,000-square-foot building came online in 2022.

The development team included Devcon Construction as general contractor, Studios Architecture as designer and Newmark as leasing agent for the project.

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The LEED Gold-certified building features floorplates up to 52,000 square feet and 13-foot clear ceiling heights. The property has covered parking with 1,571 car parking spots, which is shared with Two Santana West. Amenities include rooftop terraces and gardens, together with a community fitness center and conference center, among others.

Federal Realty Investment Trust landed the first tenant at the property in December 2023, according to the Silicon Valley Business Journal. The Michigan-based financial technology company Acrisure signed a 29,000-square-foot lease to occupy three and a half floors.

One Santana West rises on more than 4 acres at 3155 Olsen Drive, near the intersection of Winchester Boulevard and Olin Avenue. Located across Santana Row’s shopping and dining district, the property has access to interstates 280 and 880 and is less than 7 miles west of downtown San Jose.

High office vacancy in the Bay Area

Despite this new significant office commitment, vacancy is still high in the Bay Area. As of February, the market’s rate increased by 320 basis points over a 12-month period, up to 20.8 percent, a recent CommercialEdge report shows.

As the office sector still faces headwinds, owners and developers search for alternate ways to adjust and reposition their existing or upcoming properties. Earlier this year, Related Cos. filed an application with the City of Santa Clara to change the development plans of an $8 billion, 9.2 million-square-foot project in Silicon Valley that initially included 5 million square feet of corporate office space.

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