Two major tech players are looking to sell large corporate campuses in Silicon Valley, according to public records.
Intel wants to offload its 505,000-square-foot office campus at 101-141 Innovation Drive. The space includes 57,000 square feet of lab space. The listing price was not publically available, but the value of the property is $193 million, according to public records. Intel is offering a leaseback on all four buildings for approximately 12 to 24 months.
Analog Devices also wants a buyer for its 320,000-square-foot campus in Milpitas. The property at the intersection of Sycamore Drive and McCarthy Boulevard also doesn’t have a publicly disclosed asking price. However, it is valued at $32 million according to public records. The five buildings on the property range from 42,000 square feet to 95,000 square feet and were all built in the 1980s.
The Silicon Valley office market has reeled after recent developments shook confidence in the market. Google announced last month that it is reassessing the timeline for the Downtown West project in San Jose. The timeline for the urban-retail village is expected to take years and could determine other plans for Downtown, where vitality has been sapped by business shutdowns from the pandemic and the trend to remote office work.
When finished, Downtown West will include up to 5,900 homes, 7.3 million square feet of offices, 500,000 square feet of shops and restaurants, a community center and 15 acres of parks.
Investors are still assessing Silicon Valley Bank’s takeover by federal regulators, which left the bank’s $2.6 billion commercial loan portfolio in a brief limbo. About 21 percent of SVB’s commercial loans were office properties.
Silicon Valley entered the year on a downturn, according to a fourth quarter report by Cushman & Wakefield. The office vacancy rate increased from 18.6 percent to 19 percent quarter-over-quarter, and the market had 17.2 million square feet of vacant space available. The end of 2022 marks the 12th consecutive quarter where the overall vacancy rate has risen, increasing by 9 percent since the first quarter of 2020.
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