Zscaler to Expand Into 301K SF of Offices in Santa Clara

Zscaler will sublease 301,000 square feet of offices in Santa Clara that were leased but never occupied by Airbnb.

The San Jose cybersecurity firm nabbed two six-story office buildings at 4301 and 4401 Great America Parkway, the San Jose Mercury News reported, citing a regulatory filing.

Financial terms of the deal were not disclosed. The firm expects to move in after its sublease starts on Sept. 1, then runs through 2032.

Airbnb, the San Francisco-based house-sharing platform, leased the buildings in 2020, but never moved in. Two years later, Airbnb put both buildings on the market for sublease, The Real Deal reported. The company’s lease ends in 2029.

An affiliate of the Mountain View-based Sobrato Organization owns both buildings.

The offices at 4301 and 4401 Great America, built in 1985, include two cafeterias, a fitness center and an outdoor amphitheater between buildings, according to a brochure.

The deal represents an expansion for Zscaler, which in 2019 leased 172,000 square feet close by for its headquarters at 120 Holger Street, in North San Jose.

Over the 12 months that ended in January, Zscaler lost $15.5 million on revenue of $2.42 billion, according to Yahoo Finance.

The lease of 301,000 square feet of offices isn’t the only recent big deal in Santa Clara.

AI chipmaker Nvidia just paid $123 million in cash for a 10-building office and research campus at 2348 and 2350 Walsh Avenue, across the street from its headquarters.

— Dana Bartholomew