SAN JOSE — Nvidia has signed a lease for a big San Jose building, marking a significant expansion for the high-flying tech company that is helping fuel the artificial intelligence boom.
The deal for the research and office building suggests that the ailing office market in the South Bay has embarked on the road to recovery in the wake of an array of coronavirus-linked maladies.
Nvidia has leased all of a building at 300 Holger Way in north San Jose, according to sources with knowledge of the rental agreement.
The building and the lease total about 100,600 square feet, the sources said.
The occupancy timetable wasn’t immediately clear. Nvidia declined to comment regarding the situation.
Menlo Equities, a Menlo Park-based real estate firm, is the property’s principal owner, through an affiliate the company owns.
The three-story building’s assessed value as of January 2024 was $36.4 million, public records show.
Menlo Equities bought the building in 2021, the company states on its website. The company describes the office building as containing engineering and lab spaces.
Cushman & Wakefield commercial real estate brokers Steve Horton, Erik Hallgrimson, Kelly Yoder and Jeff Cushman have been marketing the building for tenants. Colliers, a commercial real estate firm also helped to arrange the Nvidia deal. None of the agents could be reached for comment.
Nvidia’s expansion is poised to bring tech jobs into San Jose.
Over the 12 months that ended in October 2024, Nvidia earned $63.1 million on revenue of $113.27 billion, according to the Yahoo Finance site.
Buoyed by the lake of profits, the Santa Clara-based tech titan has been expanding in a big way lately.
In May 2024, Nvidia paid $374.3 million to buy eight buildings in Santa Clara in a deal that greatly widened the company’s property holdings in the South Bay. The buildings are near the company’s Santa Clara headquarters.
Nvidia in March 2024 held a days-long conference in downtown San Jose that focused on an array of cutting-edge tech sectors, notably artificial initelligence.
The north San Jose lease deal offers fresh evidence that the South Bay office market is beginning to revive after a years-long slump in the wake of the coronavirius.
More tech expansions are coming into view in the South Bay, a counterpoint to the dreary landscape of office foreclosures, loan delinquencies, sky-high vacancy levels and slumping rental rates that have been haunting the Bay Area office market.
In recent weeks, Snowflake reached a deal on a huge sublease of 773,000 square feet to occupy office buidings in Menlo Park.
This month, Amazon agreed to a real estate transation to occupy 217,000 square feet of office space in Mountain View.
Nvidia appears to be the latest tech company to expanding its South Bay footprint.
“As one of the region’s standout performers, Nvidia has made headlines with its substantial growth and expansion, further solidifying its market position,” Newmark, a commercial real estate firm, stated in a report on the Silicon Valley office market.