Nvidia Leases 100K sf Office Building in North San Jose

Nvidia, the chipmaker that helped launch an artificial intelligence boom, is expanding into a three-story office building in north San Jose.

The Santa Clara-based tech firm leased the 100,600-square-foot building at 300 Holger Way, the San Jose Mercury News reported.

Terms of the deal with landlord Menlo Equities, based in Menlo Park, were not disclosed. The lease was arranged by Colliers. Brokers Steve Horton, Erik Hallgrimson, Kelly Yoder and Jeff Cushman of Cushman & Wakefield marketed the property for Menlo.

It’s not clear when Nvidia will occupy its new offices. Over the 12 months ending in October, Nvidia earned $63.1 million on revenue of $113.27 billion, according to Yahoo Finance.

“As one of the region’s standout performers, Nvidia has made headlines with its substantial growth and expansion, further solidifying its market position,” Newmark stated in a Silicon Valley office market report.

Menlo Equities bought the research building in 2021 for an undisclosed price. Its assessed value in January was $36.4 million. The building, built in 2000, was revamped nine years later.

The deal comes seven months after the high-flying chipmaker bought its eight-building, 550,000-square-foot headquarters at 2788 San Tomas Expressway for $374 million, or $680 per square foot.

It also follows a surge in leases for offices in Silicon Valley, where the market teetered after a tech-led shift to remote work. Office vacancy across the region hit a record 22 percent in the third quarter ending in September, according to JLL.

This month, Amazon.com struck a licensing deal with WeWork for 217,000 square feet of offices at 401 San Antonio Road in Mountain View. Terms of the deal were not disclosed.

Also, Snowflake subleased 773,000 square feet of offices from Meta at a four-building campus at 125-135 Constitution Drive and 100-150 Independence Drive in Menlo Park, the biggest Bay Area office lease in more than a decade.

Add these to a string of deals at a new building in San Jose’s Santana Row, and market insiders see the beginning of what may be an office rebound.

— Dana Bartholomew