Federal Realty Inks HQ Lease at Bay Area Campus

August 23, 2024

The mixed-use complex is set to include more than 1 million square feet of Class A office space.

Federal Realty Investment Trust has signed a 23,680-square-foot lease at its One Santana West, a 375,000-square-foot office building in San Jose, Calif. Database platform Couchbase will establish its new headquarters at the Class A office property’s ground floor area, with moving in scheduled for the first quarter of next year. Newmark negotiated on behalf of the landlord.

One Santana West is part of Federal Realty Investment Trust’s Santana Row, a mixed-use 2.4 million-square-foot development. The project is set to include more than 1 million square feet of Class A office space, along with a boutique hotel, 615 rental homes, 219 condo units, a movie theater and retail space.

Designed by Studios Architecture, One Santana West came online in 2022 at 3155 Olsen Drive, at the corner of Winchester Boulevard and Olin Avenue. The eight-story office building features floorplates of up to 53,000 square feet, 13-foot clear heights, covered parking spots and EV charging stations.

Amenities include an on-site café, a fitness studio with private showers, a common-area lobby, a conference center, multiple terraces on the second, seventh and eighth floors, an outdoor plaza, a food court and a golf simulator.

The LEED Gold-certified property also has a five-story parking garage with 1,750 spaces to be shared with the upcoming Two Santana West, an office building expected to comprise 374,100 square feet. Its tenant roster features Acrisure, which occupies 28,626 square feet, and London-based PwC U.S. Group LLP, which signed a 141,000-square-foot lease in April.

One Santana West occupies almost 5 acres north of Interstate 280. The location is 5 miles from downtown San Jose and 6 miles from San Jose Mineta International Airport.

Newmark’s team of Executive Managing Directors Todd Shaffer, Tracey Solari and Randy Gabrielson represented the landlord and are in charge of leasing the property.

High office vacancy rates in the West

The Bay Area’s office vacancy rate reached 20.8 percent in July, showing a 280-basis-point rise over the year, according to a recent CommercialEdge report. However, the area performed better than Denver (22.1 percent), Seattle (23.2 percent) and San Francisco, which recorded the highest vacancy rate in the West (25.4 percent).

One of the more significant deals closed in the San Jose metro year-to-date through July was the Intermolecular’s lease extension. In March, the tenant renewed its 146,159-square-foot commitment at Cannae Partners and Blue Vista Management’s 3011 N. First St., a property is has occupied for more than a decade.