SAN JOSE — Splunk has fashioned a deal that would enable the fast-growing tech company to greatly widen its presence at San Jose’s iconic and bustling Santana Row mixed-use complex, according to several sources familiar with the rental transaction.
The technology company has agreed to a lease for the entire 700 Santana Row office building, a structure that, when complete, is expected to total 284,000 square feet, according to several sources with knowledge of the leasing agreement. 700 Santana Row is currently under construction in the southern section of the retail, restaurant, residential, hotel and office complex.
San Francisco-based Splunk now occupies a 235,000-square-foot building known as 500 Santana Row that it leased in 2015.
The new 700 Santana Row offices that Splunk is leasing, in an expansion, is near the company’s current offices. The CineArts movie complex is between the two office buildings. Newmark Knight Frank brokers Todd Shaffer, Randy Gabrielson, Tracey Solari and Armand Tiano arranged the lease. NKF brokers didn’t respond to requests for a comment.
A Splunk lease would dovetail with the disclosure this month that Federal Realty, developer and principal owner of Santana Row, has decided to push ahead with preliminary plans to build a huge office campus across the street near the Winchester Mystery House and the now-closed Century 21 domed movie theater.
Federal Realty intends to develop three big office buildings totaling 850,000 square feet, along with a parking garage, in a project that would preserve the Century 21 structure near the corner of Winchester Boulevard and Olsen Drive.
A tenancy that fills the 700 Santana Row building would gobble up the remaining major chunks of office space available in Santana Row.
In an email Wednesday, Splunk said a lease hadn’t been signed as of that time.
Over the 12 months that ended in April, Splunk generated $1.36 billion in revenue, Yahoo Finance reported. Regulatory filings show that at the end of January, Splunk employed 3,200 people worldwide, up 18.5 percent from its workforce of 2,700 on Jan.31, 2017.
The 500 Santana Row offices could potentially accommodate 940 to 1,200 Splunk employees, based on typical ratios of square feet per employee. The 700 Santana Row building could contain 1,100 to 1400 workers.
“We do love our office on Santana Row,” Tom Stillwell, a Splunk spokesman, said in an email response to this new organization.
Source:: The Mercury News – Business