Apple (AAPL) has agreed to lease a big research and office complex in Sunnyvale and is seeking even more space in the city, marking a major expansion outside of the tech titan’s hometown of Cupertino.
Potentially thousands of Apple employees could end up working in buildings Apple has leased or has been scouting in Sunnyvale. It’s not clear how many of these would be new hires, or how many would be transfers from existing Apple offices.
“Having Apple in Sunnyvale would be great,” said John Pilger, a spokesman for the city. “They are a fantastic company.”
Apple has rented 215,000 square feet in what’s known as the Sunnyvale Research Center, according to realty agents from Colliers International, which is marketing the office center.
“Apple is going to start moving into the buildings by the end of the first quarter,” said Donald Reimann, a senior vice president with Colliers. “This is really a good fit for Apple because it’s close to their headquarters.”
The four-building complex is on the south side of East Arques Avenue between Lawrence Expressway and Commercial Street, across the way from Fry’s Electronics. It’s about seven miles and 12 minutes driving time from Apple’s main offices near Interstate 280 and North De Anza Boulevard.
At another Sunnyvale site, Apple has begun interior improvements on two buildings that total more than 100,000 square feet. Those are at 975 and 995 Benecia Ave.
Based on typical space use, the six leased buildings could accommodate about 1,300 Apple employees; roughly 860 would be in Sunnyvale Research Center and another 420 in the two Benecia Avenue buildings.
Yet more leasing activity is believed to be in the works for Apple. All told, Apple wants to lease 700,000 to 800,000 square feet in Sunnyvale, according to real estate sources. Representatives for Apple declined to comment.
That much space would be enough for 2,800 to 3,200 Apple employees.
“Apple seems to be gobbling up everything they can,” said Chad Leiker, a vice president with Kidder Mathews, a realty firm. “They are taking a ton of space.”
Sunnyvale is already the headquarters for numerous tech companies, including Advanced Micro Devices, NetApp, Yahoo (YHOO), Juniper Networks and Maxim Integrated Products.
But the South Bay city has become an even hotter spot for tech expansions because of the real estate activity of digital giants in adjacent cities. Google (GOOG) has wolfed down big chunks of Mountain View at the same time Apple has scoured Cupertino for available offices.
Some developers, such as Irvine, have been buying buildings in Sunnyvale in anticipation that tech firms will need more space.
“Apple is rumored to be looking at leasing the buildings that Irvine now owns,” said Phil Mahoney, an executive vice president with Cornish & Carey Newmark Knight Frank, a realty firm.
Construction is under way on new office towers in Sunnyvale, even before tenants have agreed to take those spaces. And other builders plan to construct new offices at large sites in Santa Clara, which appears to be the next city to enjoy a major surge in tech company expansions.
The activity by major players suggests that the upswing in technology expansions of 2010 and 2011 could extend through 2012.
“Things haven’t slowed down a bit,” Mahoney said. “There is still quite a bit going on. In addition to Google and Apple, there are several other major players who are looking for space.”
Contact George Avalos at 925-977-8477. Follow him at Twitter.com/george_avalos.
