Apple has officially become its own landlord at a pair of its Silicon Valley offices after finalizing a deal to purchase the buildings a few blocks from its iconic Silicon Valley headquarters.
The Cupertino, California-based iPhone maker paid $167 million for the office properties at 10100-10200 North Tantau Ave. and 5425 Stevens Creek Blvd., according to information filed with Santa Clara County. The portfolio deal encompasses nearly 270,000 square feet of space Apple had been leasing for more than a decade, adding to a sense of optimism that some big tech companies are gradually reverting to office expansions after years of severe real estate cuts.
Apple's leases for both properties were on track to expire in October 2026, but instead of extending the agreement, the company ultimately decided to scoop them up itself.
Along with Apple's commitment to bolstering its Silicon Valley real estate presence, the price tag for the portfolio deal — among the largest on record for Cupertino — is also reflective of the region's slow but steady post-pandemic rebound. PGIM Real Estate, the investment arm of insurance provider Prudential, acquired the two-property Cupertino portfolio for $165 million in August 2015, according to public filings, just a few years after Apple had leased the entirety of the buildings.
While tech companies such as LinkedIn, Block, Salesforce, Meta, Amazon and Google have implemented widespread cuts to their previously vast real estate portfolios, the impact of those decisions has been most acute in the San Francisco and Silicon Valley areas, where many are headquartered and operate in a more concentrated amount of space.
After roughly a decade of fueling record-high spikes in rent growth and demand — often leasing up space before it was even built — tech giants in recent years have been making deep cuts to their property holdings by shutting office locations, subleasing out unwanted space and walking away from future investments.
Those decisions, which have also been fueled by significant job cuts and the push to redirect savings to higher-priority investments, have loaded up the Bay Area's real estate market with millions of square feet of available space that, with the absence of large tenants, has been challenging to fill.
The Silicon Valley market has increasingly shown signs of stabilization, with companies such as Apple, LinkedIn, Walmart and Amazon committing to larger blocks of space for longer periods as they appear willing to return to their pre-pandemic days of real estate expansions.
LinkedIn, for example, recently closed a $74 million deal to purchase a 120,000-square-foot property in Sunnyvale. Walmart last month inked one of the San Francisco Bay Area's largest post-pandemic office deals. And Amazon has rapidly ramped up its partnership with coworking operator WeWork to add roughly 141,000 square feet to its Silicon Valley footprint.
Beyond Silicon Valley, a scattering of deals has pushed the growing sense of optimism that tech companies, after years of dormant leasing activity, are gradually returning to the national office landscape.
Among the 100 largest office deals to be signed nationally last year, tech companies accounted for about 30%, according to CBRE data, a share that filled about 9.3 million square feet. That figure was significantly higher than the roughly 10% share the industry had in 2024, which totaled about 3.6 million square feet.