or Connect
AppleInsider › Forums › General › General Discussion › Apple expands beyond Cupertino with large Sunnyvale lease
New Posts  All Forums:Forum Nav:

Apple expands beyond Cupertino with large Sunnyvale lease

post #1 of 31
Thread Starter 
Ahead of the completion of its planned "spaceship" headquarters in Cupertino, Calif., Apple has started to expand outside its hometown by leasing a substantial amount of office space in Sunnyvale that could house more than 1,300 employees.

According to real estate agents from Colliers International, the Sunnyvale Research Center will be home to potentially thousands of Apple employees as the tech giant looks for office and research space outside of its Cupertino base-camp, reports Mercury News.

"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 covers 215,000 square feet and is located about seven miles away from Apple's current campus at 1 Infinite Loop.

It seems that the Mac maker is looking to expand even further as reports claim that the company has begun interior improvements on two buildings at a different Sunnyvale location, which has more than 100,000 square feet of space. Together, the six buildings can accommodate around 1,300 people.

Real estate sources claim that Apple is looking to rent a total of about 700,000 to 800,000 square feet in Sunnyvale, but the rumors have yet to be confirmed.

"Having Apple in Sunnyvale would be great," said Sunnyvale city spokesman John Pilger. "They are a fantastic company."


Sunnyvale Research Center | Source: Colliers


The area is a veritable hotbed of technology, with industry heavyweights Advanced Micro Devices, Yahoo and NetApp all calling the city home.

Recent expansions by Google and Apple have created a construction boom in Sunnyvale and Santa Clara as new towers are being built in anticipation of growing tech companies' need for space.

Apple has also leased space in Cupertino as it awaits competion of a one million square foot super-campus scheduled to open in 2015. Many have likened the new facility to a spaceship because its circular design is reminiscent of a classic sci-fi spacecraft.

It is unclear whether the Sunnyvale spaces will be permanent institutions for new hires or merely temporary facilities to which current Cupertino employees will be moved during relocation to the new "spaceship."
post #2 of 31
Ah, 1 Infinite Angle.

That new campus can't come soon enough.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #3 of 31
Is Apple expanding too fast?
post #4 of 31
Expanding too fast? Nah, they need space to secure the secretive gigantic Apple UHDTV. That mammoth of a beast need to be locked down inside a security maze. ;-)
post #5 of 31
Quote:
Originally Posted by AppleInsider View Post

large Sunnyvale lease

What is large about 4 buildings?

Especially compared to the dozens that Apple is currently occupying?
post #6 of 31
Steve Jobs always grew the company slowly, in terms of employees. I do wonder why they feel the need for so many new hires. Grow slow, fire slower... Don't get ahead of yourselves, Apple.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #7 of 31
Quote:
Originally Posted by AppleInsider View Post

It is unclear whether the Sunnyvale spaces will be permanent institutions for new hires or merely temporary facilities to which current Cupertino employees will be moved during relocation to the new "spaceship."

New hires join groups, not buildings.

If you are Apple Employee 25676 (iOS Engineering), your desk is not going to be between those of Employee 25675 (Apple TV Marketing Associate III) and Employee 25677 (Director of Northern California Retail Sales).

The most likely scenario is that that certain groups in Cupertino would be moved to Sunnyvale, freeing up room for the remaining groups to expand into the vacated space.

My hunch is that Apple will lean toward moving non-engineering groups to Sunnyvale: Finance, Legal, Security, Facilities. Other non-core engineering groups might be Apple Retail (corporate), Corporate IS, some marketing teams.

If there's one engineering team that might be suitable to locate to Sunnyvale, it would be Siri. They were headquartered in San Jose before Apple acquired them.

These Sunnyvale leases are probably for 5 years or so, giving Apple the option of signing an extension or moving out. Apple's satellite campuses in Cupertino probably are staggered in terms of lease expiration, so Apple is probably shuffling people around constantly anyhow.

A year before the spaceship campus is completed, Apple's facilities planners will probably decide which buildings they will give up and which ones they will retain. Not even Apple will know exactly how many employees they will have then (given the fact that they could acquire another company at any time).

The likely scenario is that they will prioritize 1 Infinite Loop and nearby buildings (Mariani, De Anza, Bubb, etc.), particularly since Apple's HQ in the Eighties was on Mariani Avenue and they likely have some sentimental desire to maintain a presence where the company really got started.
post #8 of 31
Quote:
Originally Posted by cvaldes1831 View Post

New hires join groups, not buildings.

If you are Apple Employee 25676 (iOS Engineering), your desk is not going to be between those of Employee 25675 (Apple TV Marketing Associate III) and Employee 25677 (Director of Northern California Retail Sales).

The most likely scenario is that that certain groups in Cupertino would be moved to Sunnyvale, freeing up room for the remaining groups to expand into the vacated space.

My hunch is that Apple will lean toward moving non-engineering groups to Sunnyvale: Finance, Legal, Security, Facilities. Other non-core engineering groups might be Apple Retail (corporate), Corporate IS, some marketing teams.

If there's one engineering team that might be suitable to locate to Sunnyvale, it would be Siri. They were headquartered in San Jose before Apple acquired them.

These Sunnyvale leases are probably for 5 years or so, giving Apple the option of signing an extension or moving out. Apple's satellite campuses in Cupertino probably are staggered in terms of lease expiration, so Apple is probably shuffling people around constantly anyhow.

A year before the spaceship campus is completed, Apple's facilities planners will probably decide which buildings they will give up and which ones they will retain. Not even Apple will know exactly how many employees they will have then (given the fact that they could acquire another company at any time).

The likely scenario is that they will prioritize 1 Infinite Loop and nearby buildings (Mariani, De Anza, Bubb, etc.), particularly since Apple's HQ in the Eighties was on Mariani Avenue and they likely have some sentimental desire to maintain a presence where the company really got started.

Nice post. very interesting!

Please update the AppleInsider app to function in landscape mode.

Reply

Please update the AppleInsider app to function in landscape mode.

Reply
post #9 of 31
Quote:
Originally Posted by SpamSandwich View Post

Steve Jobs always grew the company slowly, in terms of employees. I do wonder why they feel the need for so many new hires. Grow slow, fire slower... Don't get ahead of yourselves, Apple.

They're not. Apple's number of employees has grown FAR slower than revenues and profits.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #10 of 31
Expand somewhere outside of CA and the beltway and costs go 1/2.
post #11 of 31
Quote:
Originally Posted by ChristophB View Post

Expand somewhere outside of CA and the beltway and costs go 1/2.

But then you get people that only expect to work 8 hours a day. There is no advantage to half the work for half the price.
Cubist
Reply
Cubist
Reply
post #12 of 31
Quote:
Originally Posted by ChristophB View Post

Expand somewhere outside of CA and the beltway and costs go 1/2.

Heck, that's available inside of California.

Apple could build a huge campus in Hollister. Guess what? There aren't enough qualified engineers in Hollister.

You don't know this, but Silicon Valley has known this for decades: the greatest concentration of high-tech engineering talent is in the South Bay. Not on the Peninsula, not in San Francisco, not in the East Bay, etc.

Even if you can drop costs by moving elsewhere, you have to make sure you have adequate talent to fill the necessary spots.

If you want to reduce costs and not negatively impact your operations, you pick situations where you can hire and retain high-quality employees in that newly developed region from a sufficiently large pool of qualified candidates.

Apple's massive data center in Virginia is an example. It will probably only require 50-100 regular employees. Apple can't move their entire iOS development team to the same location.

If you're a high-tech company looking to relocate certain parts of your operation to reduce costs, you look at the skill set required.
post #13 of 31
Quote:
Originally Posted by jragosta View Post

They're not. Apple's number of employees has grown FAR slower than revenues and profits.

Correct.

Revenue per Apple employee has skyrocketed over the years, despite the fact that most of the employee growth has been in Apple Retail.
post #14 of 31
Quote:
Originally Posted by jd_in_sb View Post

Nice post. very interesting!

Elementary, if you've ever worked in a Fortune 500 technology company.

Clearly the AppleInsider writer has never experienced it, hence the ludicrous proposal that the new buildings would be for new hires.
post #15 of 31
Quote:
Originally Posted by cvaldes1831 View Post

New hires join groups, not buildings.

If you are Apple Employee 25676 (iOS Engineering), your desk is not going to be between those of Employee 25675 (Apple TV Marketing Associate III) and Employee 25677 (Director of Northern California Retail Sales).

The most likely scenario is that that certain groups in Cupertino would be moved to Sunnyvale, freeing up room for the remaining groups to expand into the vacated space.

My hunch is that Apple will lean toward moving non-engineering groups to Sunnyvale: Finance, Legal, Security, Facilities. Other non-core engineering groups might be Apple Retail (corporate), Corporate IS, some marketing teams.

If there's one engineering team that might be suitable to locate to Sunnyvale, it would be Siri. They were headquartered in San Jose before Apple acquired them.

These Sunnyvale leases are probably for 5 years or so, giving Apple the option of signing an extension or moving out. Apple's satellite campuses in Cupertino probably are staggered in terms of lease expiration, so Apple is probably shuffling people around constantly anyhow.

A year before the spaceship campus is completed, Apple's facilities planners will probably decide which buildings they will give up and which ones they will retain. Not even Apple will know exactly how many employees they will have then (given the fact that they could acquire another company at any time).

The likely scenario is that they will prioritize 1 Infinite Loop and nearby buildings (Mariani, De Anza, Bubb, etc.), particularly since Apple's HQ in the Eighties was on Mariani Avenue and they likely have some sentimental desire to maintain a presence where the company really got started.

You sounds like one of the current "Apple Insiders" or past Apple employee.
post #16 of 31
They just want to be across the street from Fry's
post #17 of 31
I wish I could work for Apple. I'm a CS major and in two years I'll be graduating with a Master's degree. But it seems Apple wants people with experience, how am I supposed to have experience when I'm a new grad that can't find a job \

iPod nano 5th Gen 8GB Orange, iPad 3rd Gen WiFi 32GB White
MacBook Pro 15" Core i7 2.66GHz 8GB RAM 120GB Intel 320M
Mac mini Core 2 Duo 2.4GHz 8GB RAM, iPhone 5 32GB Black

Reply

iPod nano 5th Gen 8GB Orange, iPad 3rd Gen WiFi 32GB White
MacBook Pro 15" Core i7 2.66GHz 8GB RAM 120GB Intel 320M
Mac mini Core 2 Duo 2.4GHz 8GB RAM, iPhone 5 32GB Black

Reply
post #18 of 31
Quote:
Originally Posted by cvaldes1831 View Post

The likely scenario is that they will prioritize 1 Infinite Loop and nearby buildings (Mariani, De Anza, Bubb, etc.), particularly since Apple's HQ in the Eighties was on Mariani Avenue and they likely have some sentimental desire to maintain a presence where the company really got started.

Don't forget Bandley...

Haven't been in Cupertino for ages -- Does Apple still occupy the "Taco Towers" building on De Anza?
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
post #19 of 31
20 years ago they would have great neighbors at

1196 Borregas Ave., Sunnyvale
post #20 of 31
Has construction actually started on the spaceship? How far along are they? Just land clearing or is there the beginnings of any structure?
post #21 of 31
Quote:
Originally Posted by deepriver View Post

Is Apple expanding too fast?

No - just moving the troops closer to Mtn. View Goog
27" iMac, i7 2.8G CPU, 16 GB, 2TB Hd, Radeon HD 4850,  MacBookPro 13",  iPad2 64Gb, 2 x  iPhone4S 32Gb, 1 x 64Gb iPhone5S, 1Tb TimeCap,  2 x Apple TV.   Got my AAPL when they were $12.50 each.
Reply
27" iMac, i7 2.8G CPU, 16 GB, 2TB Hd, Radeon HD 4850,  MacBookPro 13",  iPad2 64Gb, 2 x  iPhone4S 32Gb, 1 x 64Gb iPhone5S, 1Tb TimeCap,  2 x Apple TV.   Got my AAPL when they were $12.50 each.
Reply
post #22 of 31
Quote:
Originally Posted by zoetmb View Post

Has construction actually started on the spaceship? How far along are they? Just land clearing or is there the beginnings of any structure?

Nah, it's still all on paper. There's no physical activity yet.
post #23 of 31
Quote:
Originally Posted by Aizmov View Post

I wish I could work for Apple. I'm a CS major and in two years I'll be graduating with a Master's degree. But it seems Apple wants people with experience, how am I supposed to have experience when I'm a new grad that can't find a job \

Internship?

Or get a job somewhere else and after you have a few years of experience, apply at Apple. As a matter of fact, that probably how 98% of Apple's engineers got there.

There's a lot more to being a good individual contributor than a mortarboard. Apple knows this. Anyone can talk the talk, they just want to see you walk the walk. Competition is fierce for top-tier engineering talent in Silicon Valley, but Apple has a long history of growing their engineering employee ranks very slowly.
post #24 of 31
Quote:
Originally Posted by iCupertinoMDN View Post

You sounds like one of the current "Apple Insiders" or past Apple employee.

Nope. I have never worked at Apple.

I have worked at other nearby high tech companies, one of which used to be on the Fortune 500. What I wrote is no trade secret. All the big, growing high tech companies are constantly doing the office deck chair shuffle whether they be some giant like HP, Oracle, Google, etc. or someone smaller like Drobo.

You have X workgroups in a bunch of office buildings, each facility with a maximum capacity. Some groups grow, some groups shrink, others might be split off, some combined.

I've worked in some groups that were growing so fast that a few people wouldn't unpack most of their move boxes. They'd just pile them up in their cubicle, figuring that we'd be moving in six months anyhow.
post #25 of 31
Quote:
Originally Posted by Dick Applebaum View Post

Don't forget Bandley...

Haven't been in Cupertino for ages -- Does Apple still occupy the "Taco Towers" building on De Anza?

I dunno, I don't get to that strip of road often. Maybe it's been ten years?
post #26 of 31
Apple is most likely using this property to house employees temporarily. I am going to assume that this property among other is where they will place employees that work in the buildings that need to be demolished to construct the new campus. Once built, they will shuffle them all back over to Apple Campus 2...possibly hold on to the buildings for construction of Apple Campus 3...wherever that will be.
post #27 of 31
There are no Apple employees currently working at the proposed "spaceship" campus site.

Would you care to revise your comment?
post #28 of 31
On part of the property, yes, there ARE Apple employees currently working. The area north of Pruneridge Avenue is not what I was referring to (where a bulk of the building will be...this was part of the recent purchase from HP). I should have said the area on the south of Pruneridge Avenue, which Apple has been purchasing little by little for many years. This will be the areas where the power plant, parking structure, and large green space will be adjacent to the apartment complex that would not sell themselves to Apple.

They need to shift employees out of that area temporarily to make way for the new campus.



Some of those buildings are:

Ridgeview One
Ridgeview Nine
Ridgeview Eight
Tantau One
Tantaut Two
etc
post #29 of 31
Quote:
Above post

And that's not even half of the land on which the Infinite Loop will be built.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #30 of 31
Below image may help to explain a bit better...The area on the north side is currently occupied by HP, buildings on the south side are currently occupied by Apple employees...which need to move to new office spaces for a couple years until the new building is ready.

post #31 of 31
Quote:
Originally Posted by MacGuy85 View Post


Guh, I wish they would have been able to get that apartment complex.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Discussion
AppleInsider › Forums › General › General Discussion › Apple expands beyond Cupertino with large Sunnyvale lease