Walmart Signs Record Bay Area Deal
This is the largest office lease in Silicon Valley since 2023.
The e-commerce division of Walmart has inked a 338,307-square-foot lease at Tech Corners, a 957,204-square-foot office campus in Sunnyvale, Calif. The lease is the largest one in Silicon Valley in about two years, according to Newmark, which represented owner Jay Paul Co. Colliers negotiated on behalf of the tenant, SiliconValley.com reported.
The retailer’s division will occupy space in two of the property’s five buildings, at 803 and 815 11th Ave., the same source shows. The transaction expands Walmart’s Sunnyvale footprint to more than 1 million square feet.
In 2023, the retailer subleased an entire 719,000-square-foot office complex dubbed Moffett Green from Meta Platforms. That location, near the intersection of Crossman Avenue and Caribbean Drive, opened for Walmart employees in April.
A Silicon Valley office campus
The five-building campus came online between 2001 and 2014 on 26 acres at 803-815 11th Ave. The low-rises have floorplans averaging 45,000 square feet, according to CommercialEdge.
Common-area amenities include cardio and weight training equipment, fitness rooms and outdoor exercise areas at The Club, a 22,698-square-foot fitness and wellness center. There are also full-scale cafés and dining halls, as well as the Club Annex with workspaces, lounge areas and gaming spaces. A new 12,000-square-foot retail addition is currently underway at the LEED Gold- and Platinum-certified property.
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The owner recently undertook a $30 million renovation to the office campus, which had historically been fully leased to Ariba and Google over the last decade. Current tenants include the likes of Amazon, Meta, Google and now Walmart.
Newmark Executive Vice Chairman Phil Mahoney and Vice Chairman Mike Saign represented Jay Paul Co.
Silicon valley office on the mend
Activity in Silicon Valley has picked up recently, emerging from its post-pandemic doldrums. In May, NVIDIA expanded its presence in the market with its $123 million acquisition of a 251,000-square-foot flex office campus adjacent to the company’s headquarters.
Also in May, AI specialist Zscaler inked a 301,163-square-foot sublease at 4301 and 4401 Great America Parkway in Santa Clara, in a deal also brokered by Newmark.
During the first quarter of 2025, the Silicon Valley office market saw 106,772 square feet of net absorption, considerably less than the positive 1.1 million square feet in the fourth quarter of 2024, but still positive, Newmark reported. Overall vacancy came in at 19.6 percent, a slight increase from 19.5 percent in the previous quarter.
Asking rents increased to $5.15 per square foot in Q1 2025, up 2.9 percent quarter-over-quarter, Newmark also noted. Companies are prioritizing amenities like flexible workspaces, larger conference areas and natural light to encourage employees to return to the office.
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