The Sobrato Organization Lands Record HQ Deal
A cybersecurity firm has signed Silicon Valley’s largest new office lease since 2023.
The Sobrato Organization has secured the largest new office lease in Silicon Valley since 2023. Zscaler, an AI-powered cybersecurity firm, inked a headquarters deal for more than 300,000 square feet at the developer’s Great American Corporate Center in Santa Clara, Calif.
Newmark represented Zscaler in the sublease of the two-building office campus from Airbnb. Developed in 1985, the six-floor, low-rise buildings are located at 4301 and 4401 Great America Parkway. The firm will be relocating its headquarters from 120 Holger Way in San Jose, Calif., to accommodate its rapid growth.
Zscaler’s new global headquarters is scheduled to open in the summer of 2026. The lease term runs through April 30, 2032. Metropolitan Life Insurance Co. is the property’s current lender, according to CommercialEdge.
In March, exterior work was done on the property to replace the exterior door and storefront on the first floor. The interiors on all floors received new walls, doors, ceilings, lights, break rooms, restroom cores and finishes.
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A year prior, landscape improvements were performed, including removing the E parking lot, hardscape, landscape and irrigation.
Leading the advisory team for Newmark were Vice Chairman Mike Saign and Senior Managing Director Rich Hoyt.
World-class corporate neighbors will surround Zscaler at this North Santa Clara location, which is adjacent to Levi’s Stadium and offers nearby hotel amenities, restaurants and retail options.
In January, The Sobrato Organization sold a 500,000-square-foot, four-building office campus at 2701, 2711, 2721 and 2731 San Tomas Expressway in Santa Clara to NVIDIA, which had occupied the property since 2010. The complex is near the tech giant’s headquarters, a 550,000-square-foot asset it purchased last year from Preylock Holdings for $374 million.
HQ relocation trends
Last year saw a significant increase in corporate headquarters relocations, with a total of 96 moves, according to CBRE’s latest research. Many of these announcements highlighted headquarters relocations from California to states like Texas, Tennessee, Arizona and Colorado. Some companies however choose to remain in the San Francisco Bay Area because of the critical mass of intellectual capital represented by local universities, according to Ed Del Beccaro, EVP & San Francisco Bay Area Manager of TRI Commercial/CORFAC International.
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