A major office deal between a tech giant and a retail giant has reportedly been signed in Silicon Valley.
Walmart Global Tech, the digital arm of global retailer Walmart, has taken over the entire campus leased to Meta Platforms in Sunnyvale, the registry reports.
The campus, known as Moffett Green, spans a total of 719,000 square feet. Mehta has committed to retaining this space in 2021, despite moving to hybrid work in response to the pandemic. At the time, the deal was the largest private sector office lease of the year.
A Walmart spokesperson confirmed that “Walmart Global Tech is considering new office space in Sunnyvale.”
“Technology plays a fundamental role in serving our customers, members, and employees, and we look forward to continuing to grow our talented team in Silicon Valley,” the spokesperson said. said the person. Mehta declined to comment when contacted.
Sources told the Chronicle that Meta has never occupied Moffett Green and that much of the space on campus has yet to be built out.
Last summer, Steve Golubczyk, western region capital markets director at real estate services firm Newmark, and his team sold four properties on behalf of both the seller, Tishman Speyer, and the buyer, Commonwealth Partners LLC. The campus, which consists of several buildings, was sold for $707 million.
While many subleases have languished in the market due to the pandemic as companies continue to give up more space than they lease, Golubczyk said Moffett Green’s sublease has found some traction. I wasn’t surprised.
“It’s a great location that makes a lot of sense. It’s a testament to Sunnyvale and Moffett Park,” he said of Sunnyvale’s old office district, which was recently approved for redevelopment and has plans for about 20,000 homes. Mentioned.
The sublease agreement means Walmart will likely exit its current digs at Sunnyvale Business Park, a 600,000-square-foot commercial and industrial complex at 840 California Avenue.
With Walmart leaving the business park, occupancy in the area will drop to 15%, officials told the Chronicle. Walmart leases just over 300,000 square feet of the complex.
Contact Laura Waxmann: laura.waxmann@sfchronicle.com