Oracle Corporation (NYSE:ORCL) is the most recent heavy =-weight in the Bay Area to explore the hot office market in Oakland.
Huge investment in acquiring building
The company reported that it leased a 16,000 square foot space on the 17th floor on 1330 Broadway, a building bought by TMG Partners about two years ago then revamped. The developers invested $30 million in the 313,000 square-foot tower in modernizing the lobby, common areas and the elevators in the building.
David Cropper, TMG’s director of development said, “We’re pleased to see that Oracle is expanding its presence in Oakland and has chosen 1330 Broadway as we’re nearing completion of our redevelopment of the project.” He added that the company is proud to have restored the building while developing a home for one of the most successful tech companies in the Bay Area.
Oracle’s new space will host product development in an office with views of the Oakland Hills, Marin and San Francisco. The company is one of the largest employers in the Bay area with over 6,700 employee from the locality and more than 135,000 globally.
What led to increased attraction in the Bay Area?
The tower also comes as the first venture of TMG in Oakland. The company has often kept away from the area for decades. Recently the company also acquired a second office building located at 2201 Broadway for a whopping $77 million last year. John Dolby who is a broker with Cushman & Wakefield represented the landlords in collaboration with Dane Hooks. He explained the situation stating that with the recent renovations of buildings in downtown taking place, the city will continue to attract tech companies who would have never considered the area before.
TMG has brought together tenants occupying the building to acquire larger spaces at a time. This is because the office market in Oakland has escalating rents and low vacancy. After leasing by Oracle, the building remains with five full floors available which comprises about 80,000 square feet. More tenants are expected to head to downtown Oakland in a bid to capitalize on mass transit access including multiple BART stops as well as Amtrak station. The area has unique features with all the transportation infrastructure.
The stock of Oracle closed at $44.72 on Tuesday after a fall $0.12 or 0.27%.