Apple nears $1 billion in Bay Area office space expansion in three months

AppleInsider

Apple's real estate takeover in the Bay Area continues with a $365 million Mathilda Campus just north of Apple Park in Sunnyvale, California.

A four-building campus on Mathilda Ave

Silicon Valley is already packed to the brim with tech companies filling out every office space available. Even after Apple Park, the campus that can hold 12,000 employees, Apple has been taking over real estate across the Bay Area.

According to a report from SF Chronicle, Apple is under contract to buy a four-building Mathilda Campus in Sunnyvale for $365 million. It is a 663,000 square feet campus that is already majority leased by Apple.

The latest purchase is the third by Apple in the San Francisco region in recent months. It also acquired two buildings next door to the new Mathilda campus for $350 million and the Tantau "Cupertino Gateway" buildings near Apple Park for $160 million.

That means Apple has spent about $882 million on real estate expansion alone in the previous three months.

Apple is among several companies buying up offices in the Bay Area in spite of widespread layoffs and other issues. However, the region is still dealing with high vacancy rates, with San Francisco over 30% and Sunnyvale at 18%.



Read on AppleInsider

applepoor

We are not making more land so buying properties near the space ship office complex while prices are low due to low occupancy is a smart move for Apple. As the owner, Apple  could always lease some space out for some  additional cash flow. 

mpantone

Buying the land when real estate prices are depressed is a smart move, especially in California because it locks the buyer into lower property tax payments (thank you very much Proposition 13).

People who aren't California residents probably aren't aware of Proposition 13's impact on real estate transactions in this state as well as tax revenue implications. Basically Prop 13 (enacted in 1978) limits property taxes to 1% of assessed value and cannot increase by more than 2% annually. This is a great deal for anyone with plans to hold onto that property for years and years.

fred1

Time to add that additional floor to the spaceship building . . . 

But seriously, I wonder if Steve and friends considered building a much larger building at the time. 

anantksundaram

Cool. In the meantime, I hear Meta is offering up to $1B for talent….

Whatever works.