- Jan. 18, 2012 - SILICON VALLEY, Calif. --
The Silicon Valley experienced an increase in the number of new construction/
build-to-suit project commitments in 2011. With the region on the road to recovery, demand for top tier space has increased, especially in the region’s office sector. In fact, the 3rd quarter of 2011 exhibited the highest amount of office leasing and user sales activity since the end of 2001 according to Colliers’ research. Once boasting speculative larger project construction, the Valley is now leaning towards a build-to-suit model.
Jim Beeger, senior vice president with Colliers International’
s Silicon Valley office, commented, “Build-to-
suits, especially for the big creditworthy tenant, will become more prevalent during the next year. We’ve already seen commitments for four projects between 70 and 340 thousand square feet in 2011. This total exceeds what was done in the prior eight years combined and is just the beginning. The days of significant amounts of speculative construction for large buildings are gone. Capital partners want to see commitment.”
Beeger also commented that we can expect this construction to incorporate LEED-certified components for both shell and interior tenant improvements. Colliers International has recently represented two notable clients that have contributed to the increase, Omnicell, Inc., and Synopsys, Inc.
Omnicell, Inc., (NASDAQ:OMCL)
, a leading provider of medication and supply management solutions and analytics software for healthcare facilities, will relocate to their new headquarters at 590 East Middlefield Road in Mountain View, Calif., leasing 99,880 square feet of R&D space. Terry Bell and Joe Elliott, both SIOR-designated senior vice presidents with Colliers International’
s Tenant Systems Group, represented the company in the transaction. Four Corners Properties, the owner and developer, commenced the build-to-suit project in December and has targeted completion for November 2012. The project will feature green components such as a solar array providing up to 15% of the building’s total energy needs.
Kirk Thompson, Omnicell’s sr. manager of Real Estate, commented, “We are pleased that Omnicell will have a state-of-the-
art facility that will allow us to service our employees and customers with the most advanced and environmentally friendly facility possible. Terry and Joe delivered an impressive and viable strategy for our present and future space requirements.”
Terry Bell commented, “After assisting Omnicell with several real estate transactions locally and nationally, it was especially rewarding to help Kirk find a high-quality, class A+ corporate headquarters facility right in the heart of Mountain View. This will be a showpiece facility that will very effectively meet the needs of this growing company.” Joe Elliott added, “The technology and design that is incorporated into this project is remarkable. This facility is a great example for future construction and for developers looking to incorporate quality design and current environmental systems into their projects.”
Synopsys, Inc., (NASDAQ:SNPS)
, a world leader in software and IP used in the design, verification and manufacture of electronic components and systems, recently inked a 340,000-square-
foot office build-to-suit project at 690 E. Middlefield Road, Mt. View, which is slated for LEED gold certification. Colliers International represented the company in the transaction. Dostart Development Company, LLC and Rockwood Capital, LLC, are developing the site together as 690 E. Middlefield Road Fee, LLC.
Jeff Fredericks, SIOR, managing partner of Colliers’ Silicon Valley office, commented, “The increase in build-to-suit projects this year shows the resilience of the Valley’s commercial real estate market in the midst of a tough economy. Our brokers play a vital role in providing solutions to companies that are in need of customized space that matches their business plan. I’m quite proud of the team’s consistency in delivering such fine products for our clients.”
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