Seagate seeks to sublease part of R&D campus in Fremont

Seagate Technologies wants to sublease part of its 31-acre research campus in Fremont.

The Ireland-based data storage firm is marketing for sublease 103,000 square feet of its 575,000-square-foot research and development campus at 7488 Kato Road, the San Francisco Business Times reported.

Asking rents for the sublease were not disclosed. Cushman & Wakefield and Cresa hold the listing.

Madison Capital and Sixth Street bought the campus for $260 million as part of the sale-leaseback deal that closed in May. In the sale-leaseback, Seagate agreed to remain a tenant until at least 2033. 

Seagate, which wants to sublease a fifth of the property, aims to reduce its nearly 10 million-square-foot real estate portfolio to cut costs.

Madison Capital and Sixth Street have said little about their long-term plans for the campus, which includes Seagate’s offices as well as 11 acres of land behind that building.

This month, Madison began offering 11 acres of land at 47488 Kato for lease for use as industrial outdoor storage, according to JLL. In September, Madison filed plans to split the campus into two separate lots.

Seagate’s campus, along Interstate 880 in an industrial region of south Fremont, is surrounded by tenants such as Tesla, battery manufacturer Amprius and Zoox, Amazon.com’s self-driving car unit.

In December, Houston-based Hines and Los Angeles-based Oaktree Capital Management secured a construction loan to build a 267,000-square-foot manufacturing and warehouse campus at 49000-49090 Milmont Drive in Fremont.

At the same time, CymaBay Therapeutics leased a 52,400-square-foot office building in Fremont for a new headquarters at 7601 Dumbarton Circle, in the Ardenwood District.

— Dana Bartholomew

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