SAN JOSE — A tech large has struck a deal to sublease an enormous chunk of San Jose workplace area in a deal that, if the corporate expands into the brand new area, would characterize an enormous financial win for the Bay Space’s largest metropolis.
ByteDance has agreed to a sublease deal for 658,000 sq. toes for everything of two buildings in north San Jose’s Coleman Highline mixed-use advanced, in response to 5 business property sources who're acquainted with the progress of the transaction.
The tech firm, whose merchandise embrace TikTok, a video-sharing and internet hosting social community content material app, has signed a sublease settlement with a unit of Verizon, which leased the places of work in 2019 and at one level had supposed to position its subsidiary, famed Web portal Yahoo, within the brand-new buildings.
The 2 huge prime workplace buildings grew to become out there for sublease after Apollo International Administration, a personal fairness agency, purchased Yahoo. Non-public fairness companies typically embark on wide-ranging makes an attempt to chop bills in corporations they purchase, together with placing workplace buildings up on the market or providing them for sublease.
The workplace buildings are situated at 1193 and 1199 Coleman Ave. throughout the road from San Jose Worldwide Airport.
Verizon has already agreed to the sublease deal, in response to the sources. Two sources additionally stated that it’s doable the sublease transaction was additionally being reviewed by the present proprietor of the buildings, AGE Fairness Companions.
London-based AGC Fairness Companions paid $780 million for the 2 buildings in 2021.
The subleased workplace buildings are among the many latest additions to Coleman Highline, which has grow to be of Silicon Valley’s most profitable tech campuses.
If the transaction is absolutely accomplished, the sublease settlement would characterize one among Silicon Valley’s greatest workplace rental offers of 2022.
ByteDance is raring to maneuver into the brand new places of work, in response to one of many sources who're acquainted with the transaction’s standing.