Artificial intelligence tech firm will expand in San Jose with new HQ
SAN JOSE — An artificial intelligence and tech company will move its headquarters to a big San Jose office campus in a leasing deal that will enable it to expand its Silicon Valley operations greatly.
Astera Labs has leased a two-building office complex at the corner of North First Street and Charcot Avenue in north San Jose, documents on file with the Securities and Exchange Commission show.
The tech company leased 154,200 square feet in the office complex, which has addresses of 2315 and 2345 North First St., according to the SEC filing.
Sobrato Organization, acting through its affiliate that owns the property, leased the two buildings to Astera Labs.
The office deal represents the latest evidence that a turnaround could be emerging for the South Bay commercial real estate market.
A growing number of tech companies are completing office rental deals in the South Bay. That would be a welcome contrast to the sour office market that has haunted the Bay Area for about two years.
Astera Labs’ rental agreement in San Jose represents a major expansion of the company’s operations in the Bay Area.
The deal will enable Astera Labs to triple the space where it operates in the South Bay.
At present, the tech company occupies 51,300 square feet in Santa Clara.
Astera also has an option to expand beyond the 154,200 square feet it is leasing in the North First Street campus, the SEC filing shows.
“The company also has the right of first refusal and the option to expand the Premises to include all of the remainder of the building located at 2315 North First St.,” Altera Labs stated in its SEC filing.
The north San Jose lease is slated to commence in April 2025, depending on when necessary construction activity on the campus is complete.
The office campus totals 224,100 square feet, according to a marketing brochure for the complex that was circulated by CBRE commercial real estate brokers Vincent Scott and Mike Filice, who have been scouting for tenants on behalf of the Sobrato firm.
The property consists of two four-story office buildings and an executive conference center. One office building totals 110,800 square feet, the other is 110,700 square feet and the conference center totals 2,500 square feet, the CBRE brochure states.
The initial term of the lease will total 7.5 years, the SEC filing shows. Astera Labs also has the option to extend the lease for up to two consecutive terms of five years each.
Astera Labs raised $713 million through its March 2024 initial public offering, pricing the shares at $36 each. The company’s shares closed at $140.93 on Jan. 3.