Consolidation to new mixed-use, amenity-rich location reflects firm’s post-COVID workforce and workplace strategy

CHALLENGE

Consolidate from an under-utilized campus, unlock value in owned facilities, create updated, collaborative work environment to support innovation, hiring and retention.

In 2020, Netapp, Inc. was headquarters were located at a 21.5 acre, 702,193 SF suburban office campus in Sunnyvale, California.  NetApp purchased and developed the property over a 15 year time span, proximate to surrounding Google facilities. The Fortune 500 cloud-based data-centric software company is a Silicon Valley leader that continues to evolve and mature.   Its occupancy needs were changing to a more dispersed model, accelerated by the remote work forced by COVID 19.  Leveraging best practices and lessons learned throughout the pandemic, NetApp was developing a new hybrid workplace strategy, and working with the Savills team to find an ideal location to modernize and optimize its operations.  Key priorities were to create a collaborative environment for continued innovation, while recapturing and redeploying the capital from their owned facility to minimize capital outlay and maximize the company’s past investment. 

SITUATION

Source central, amenity-rich location to support talent retention and recruitment, minimize capital expense, create modern HQ that enables hybrid workplace strategy 

With stiff competition to retain and attract the best talent, the Savills team prioritized locating centrally located mixed-use locations to meet the demands of NetApp’s evolving modern workforce.  Leveraging deep connections in Silicon Valley, the team was able to source and secure an ideal location, that was also cost-effective – an entire new 301,109 SF building at 3060 Olsen Drive in San Jose.  The off-market opportunity was the result of a technology tenant pressured to reconsider its space commitment prior to move-in due to COVID 19 impact.  The property is part of Santana Row, a mixed used development offering over two million SF of retail, residential and hotel options, including luxury rentals and condos.  The Savills team structured a long-term lease with the owner – Federal Realty Investment Trust -- with build-in flexibility to meet NetApp’s evolving corporate and industry demands.  The existing new office space was configured to meet the company’s hybrid workplace strategy needs with minimal capital outlay, saving money on everything from fit-out to furniture and equipment costs.  The 21.5 acre, 702,193 SF Sunnyvale Campus was sold to Tishman Speyer for $365 million. 

RESULT

Modern global HQ reflects industry leadership and is talent magnet, capital is recaptured and redeployed from timely sale, portfolio is right-sized and positioned for the future   

NetAPP’s new global HQ is a talent magnet.  Its desirable location, walkable amenities and customized building reflect the priorities of its hybrid work model -- and its new plug-and-play offices are designed to better support cross-functional collaboration and teamwork.  To improve and complement the employee experience focus, the building has a full-service café, an 8,500 SF rooftop terrace and garden, a penthouse executive wing and ample structured onsite parking options. 

Following the sale of its owned campus, NetApp’s portfolio is right-sized for the future and supports more nimble and thoughtful real estate decision-making.  Capital from the disposition can be redeployed for this Silicon Valley leader as it continues to evolve and transform its business operations.  Savills continues to serve as a multi-disciplinary real estate advisor under a master services agreement initiated in 2018, offering NetApp real estate services throughout the world.