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Amazon Expands Silicon Valley Presence with Huge Lease in Sunnyvale

Internet Seller Now Occupies Six Full Buildings in Moffett Towers
June 6, 2018
Moffett Towers I totals 1.8 million square feet of office and R&D space on 52 acres. has leased two buildings in Jay Paul Co.’s Moffett Towers development in Sunnyvale, CA, bringing the internet seller's total occupied office space in the Silicon Valley to 1.85 million square feet, its largest presence outside of Seattle.

The e-commerce giant has leased 385,000 square feet at 1140 and 1160 Enterprise Way at the prestigious business park in Sunnyvale's Moffett Park, according to sources with knowledge of the transaction cited by the Silicon Valley Business Journal.

Micro Focus, which merged with Hewlett-Packard Enterprise (HPE)'s software business last year, currently leases all of the 227,288-square-foot, eight-story 1140 Enterprise Way tower built in 2008. HPE also occupies 166,488 square feet at 1160 Enterprise Way, where AmazonLab126, Amazon's research and development company that engineers devices like the Fire tablet, Kindle reader and Fire TV, currently occupies two floors totaling 54,200 square feet.

HPE, which spun off from Hewlett Packard Co. in 2015, announced last year it will consolidate its Silicon Valley operations and move its headquarters from Palo Alto to Santa Clara, headquarters of Aruba Networks, which was acquired by HPE in 2015. However, the company switched gear in late March and announced it will move into six floors totaling 220,000 square feet at 6280 America Center Drive in North San Jose's America Center.

The Moffett Towers development comprises a total of 1.8 million square feet of office and R&D space on 52 acres. Moffett Towers II, which is under construction and is already fully leased, includes an additional 1.8 million square across five buildings, including 350,000 square feet leased by Amazon Lab126 at 925 11th Ave.

The scramble for space in Sunnyvale and throughout the Silicon Valley by Seattle-based Amazon, Google parent Alphabet, Inc., Facebook and other tech firms has been described by CoStar market analyst Jesse Gundersheim as an "arms race."

In the largest lease of the year in the area, Menlo Park, CA-based Facebook last month announced it will take more than 1 million square feet in three of the five buildings at Moffett Towers II.

Amazon continues to grow even as it weighs locations around the country for a $5 billion second headquarters campus known as HQ2. Prior to the most recent lease, Amazon occupied nearly 1.49 million square feet of leased office space in the Silicon Valley, roughly two-thirds in Sunnyvale at Moffett Towers I and II, according to CoStar data. The new lease could increase that to at least 1.85 million square feet.

The total also includes about 224,500 square feet leased by Amazon at 1120 Enterprise Way and 357,500 square feet at 1100 Enterprise Way in Moffett Towers I.

Amazon also leases roughly 275,000 square feet at two locations in East Palo Alto, roughly 130,000 square feet in Palo Alto leased by A9, the Amazon subsidiary that develops search engine and advertising technology; and 88,580 square feet leased by Lab126 at Torre Plaza in Cupertino.

Amazon and its subsidiaries, including Web Services, Twitch Interactive, Inc. and Alexa Internet, Inc., lease about 140,000 square spread out over several buildings in San Francisco.

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