Roku puts 200K sf building near San Jose headquarters up for sublease

Roku has put another building it leases in the Coleman Highline complex in San Jose up for sublease, according to a new listing. The new sublease joins a 163,000-square-foot five-story building Roku already listed for sublease in the same complex, where it is headquartered and also occupies two other office buildings. 

The new listing advertises the availability of the nearly 200,000-square-foot six-story building at 1155 Coleman Avenue. 

Paul McManus and Blake Zamudio of Colliers are representing both listings, but could not speak about them due to a non-disclosure agreement. Roku did not immediately reply to a request for comment but said in an SEC filing earlier this month that it was cutting 10 percent of its workforce and planned to consolidate its office space. The streaming device and service company anticipated an impairment charge of $160 million to $200 million as it leaves some of its office space well before the leases are up. 

At 1143 Coleman, which Roku never occupied and was listed for sublease in the spring, the lease runs until the end of 2029. Neighboring 1155 Coleman, which was just listed, is leased until the end of September 2030. A Blackstone-affiliated REIT bought both buildings as well as an amenities structure and parking structure for $275 million, or about $770 per square foot, in 2020 from developer Hunter Storm. Thus far, Roku appears interested in keeping its two other office buildings in the complex, where it has leased a total of over 730,000 square feet.

Tenants interested in the two vacant buildings will have access to a fitness center, outdoor bocce court and 1,000 parking spaces, according to the listing notes. The buildings also have “panoramic” views of Paypal Park, where the Earthquakes and Bay FC play soccer, and the San Jose airport. At 1143 Coleman, there is a dedicated kitchen with induction cooktops and elevated outdoor patio, while 1155 Coleman has an auditorium. 

Other than Roku, Verizon Media is the major tenant in the 1.75-million-square-foot Gensler-designed Coleman Highline development, which is due to wrap up its final phase of construction by the second quarter of 2024, according to marketing information on the Hunter Storm website. 

The two Verizon buildings were purchased by London-based AGC Equity partners for $780 million in 2021. That same year, Verizon sold off Yahoo, which it had planned to put in the buildings, and subleased the 658,000-square-foot space to TikTok parent company ByteDance in the fall of 2022.

Hunter Storm has also partnered with Holland Partner Group on an adjacent mixed-use development called Gateway Crossings with more than 1,500 residential units, a proposed 225-room hotel, 2.1-acre park and more than 45,000 square feet of retail. 

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