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Roku Streaming into San Jose With Large Headquarters Lease

Fast-Growing TV Service Doubling Size of Main Office, Commits to Hunter Properties' Coleman Highline Project
August 6, 2018
Roku Inc., one of the leading platform providers for streaming television content, inked four new leases with Hunter Properties for nearly half a million square feet in the developer's latest Silicon Valley project.

After committing to take 472,319 square feet in four office buildings, Roku plans to relocate its headquarters from Los Gatos to the Coleman Highline location in north San Jose.

The move comes as more and more television viewing shifts from antenna- or satellite-based or cable-connected distribution methods to internet streaming.

Roku is scheduled to announce its quarterly earnings this week. In its first quarter results announcement three months ago, the company raised its full-year outlook based on strong results. Its platform segment revenue more than doubled, as active accounts grew 47% year-over-year and its average revenue per user increased 50%.

Nearly half of Roku's roughly 21 million active users have cut the cord or have never had a traditional pay TV subscription, the company said.

According to a securities filing, Roku signed leases last week for four buildings on Coleman Avenue. The breakdown of its new executive offices includes:
  • 1155 Coleman where the firm leased three floors totaling approximately 91,368 rentable square feet;
  • 1173 Coleman in its entirety totaling approximately 194,790 rentable square feet;
  • 1167 Coleman also in its entirety totaling approximately 163,272 rentable square feet;
  • 1161 Coleman, also in its entirety totaling approximately 22,889 rentable square feet.

    In addition, Roku has the first option on a new building that Hunter Properties plans to build at 1179 Coleman.

    The new lease for 1161 Coleman is scheduled to start January 2019, with the other three leases by March 2020. Roku has a 140-month lease term with one seven-year renewal option.

    The leases provide for annual base rent of approximately $20.8 million in the first year.

    Roku's current corporate headquarters are spread out in several locations totaling 234,000 square feet in Los Gatos and Saratoga Springs, California, under leases that expire 2020.

    Roku was represented by Phil Mahoney, Jeffrey Rodgers and Andy Hueser of Newmark Knight Frank. CBRE's Jeff Houston and Mike Benevento serve as the primary office leasing representatives for the contact for Coleman Highline development.

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