Apple Continues Expansion, Leases Big Office Building In Sunnyvale
SUNNYVALE (KCBS) – Apple continues to expand in Silicon Valley, signing a lease this week for a high-profile office building in Sunnyvale. It's part of a trend of tech companies gobbling up commercial real estate quickly in Silicon Valley.
Apple's latest digs is a 156,000 square foot office building at the corner of Mathilda and McKinley in Sunnyvale.
"It's a good location, with all of the technical guys around here, so I think it's going to be a good place for them," said Rohit, who works for a nearby tech company.
This is just the latest building that Apple has leased as it continues to grow outside of Cupertino. Craig Peterson with Kidder Mathews Commercial Real Estate firm said that Apple is a highly desired tenant.
KCBS' Matt Bigler Reports:
"They're known for putting their own improvements in and singing short-term leases, so the landlords get a lot of benefits from having Apple as a tenant," said Peterson.
Meanwhile, other tech companies are scouring Silicon Valley for office space, and that reduced vacancy rates to 13.2 percent at the end of last year. New campuses are also being built according to Sharon Simonson, editor-in-chief of The Registry, a real estate publication.
"To say it's booming, yes it is in certain ways, but it's not universal and it's like anything else: location, location, location," said Simonson.
She notes the real estate market in the East Bay is still struggling due to sluggish job growth.
(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
