SAN JOSE — Sage Intactt, an up-and-coming cloud services firm, has struck a deal for a big expansion of its downtown San Jose operations in a deal that suggests tech companies hunger for space in the urban core of the Bay Area’s largest city.
The tech company leased 20,000 square feet in Riverpark Tower 2, one of two office high rises that in the Riverpark Towers complex, an iconic campus perched on the banks of the Guadalupe River in downtown San Jose, according to sources familiar with the transaction.
The Sage Intactt deal is the largest leasing agreement so far this year in downtown San Jose. The rental agreement extends the number of years of the tech company’s rental agreement, along with providing it with more office space in the tower.
Prior to the deal, Sage Intactt had occupied five floors in Riverpark Tower 2. The leasing transaction enabled Sage to expand to a sixth floor in the building.
The building is being marketed by Newmark Knight Frank commercial real estate brokers Michael Saign, Anne Ralston, Phil Mahoney, and Joe Kelly. Newmark Knight Frank declined to comment about the transaction. Riverpark Towers owners DivcoWest and Rockhill Management didn’t comment about the new leasing deal.
As a result of the transaction, Sage Intactt now leases roughly 118,000 square feet in the building, according to the sources.
In the time since DivcoWest and Rockhill bought the two-building office center in December 2017 for $285 million, they have completed a total of 500,000 square feet of rental transactions, measured by expansions, extensions, and new leases.
Riverpark Towers consists of two ten-story towers. Riverpark Tower I, at 333 W. San Carlos St., totals 297,000 square feet. Riverpark Tower 2, at 300 Park Ave., is roughly 303,000 square feet. The Riverpark complex is now 98 percent leased.
The office complex commands sweeping views of the Santa Clara Valley and San Jose. It’s on a site bounded by West San Carlos Street, the Guadalupe River, Park Avenue, and Woz Way.
Besides Sage Intactt, other tenants include Nokia, Cohesity, Okta, WeWork, and BDO.
Big developers — and huge tech companies such as Google and Adobe — have maneuvered on multiple fronts to create major campuses for large tenants.
In Adobe’s case, the cloud services titan has begun construction of a big new office tower for a major expansion of its downtown San Jose headquarters complex.
Yet the Sage Intactt deal is a reminder that mid-sized and smaller tech companies also have begun to scout for more elbow room in downtown. Sites such as Riverpark Towers and the 50 W. San Fernando St. high rise may offer among the few alternatives for big expansions that fall short of a million-square-foot requirement.
As a result, multi-tenant office towers that are deemed to be top-quality properties have achieved rising rents. Riverpark Towers is believed to command the highest rents in downtown San Jose for prime, or Class A, office buildings, according to commercial property experts.
Source:: The Mercury News – Business