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January 24, 2018

8x8 signs big lease for offices near San Jose airport

The Mercury News

George Avalos

SAN JOSE - 8x8 has leased a big office building just west of Mineta San Jose International Airport and will shift its entire South Bay workforce to the complex, the tech company announced Wednesday.

The company leased 162,000 square feet at the Coleman Highline complex in San Jose. The initial stages of the project are now under construction.

Offices of that size could potentially accommodate 800 or more employees in the new building. San Jose-based 8x8 will vacate two North San Jose office buildings when it relocates to the airport area.

"We are thrilled to see a fast-growing, high-trajectory company like 8x8 choose to remain in San Jose," San Jose Mayor Sam Liccardo said Wednesday.

The cloud communications and software company would be the first tenant in the complex, which, if fully built, would total 1.5 million square feet of offices.

"This is a very exciting time for 8x8," said Vikram Verma, chief executive officer for 8x8. "We have been rapidly expanding our global customer base, while hiring the industry's top talent to join us in our next phase of market leadership."

Eventually, the Coleman Highline project is slated to contain eight office buildings and three parking garages. It also will feature amenities such as on-site retail, terraces on the office buildings and sports areas.

"The new 8x8 headquarters demonstrates our commitment to grow our operations in San Jose, and deliver a world-class experience for our employees, partners and customers who help accelerate our global growth strategy," Verma said.

The office complex is within walking distance of the Santa Clara Caltrain station and light rail, according to a marketing brochure prepared by CBRE, a commercial realty brokerage that is marketing Coleman Highline to prospective tenants. It's also a short drive from the airport and Interstate 880.

CBRE also touted the project's proximity to downtown San Jose and Santana Row's dining, entertainment and retail offerings.

The first phase of the office complex consists of two buildings totaling 357,000 square feet, including the five-story building that 8x8 leased, CBRE stated in the online brochure.

"This landlord has been waiting quite some time to find the right tenant to kick off their project on the other side of the airport," said Chad Leiker, a first vice president with Kidder Mathews, a commercial real estate firm. "This appears to be a big win for them and for San Jose."

The offices will be able to accommodate the next growth phase for 8x8, the mayor said. Liccardo also noted that the company was able to meet its need for expanded offices by remaining in the Santa Clara Valley, and specifically, in San Jose.

"While headlines often focus on where large companies move their headquarters, nearly all job growth in our Valley comes from existing companies growing, and choosing to grow, here," Mayor Liccardo said.

8x8 will vacate two buildings that together total 140,000 square feet, said Priya Ramesh, a spokeswoman for 8x8, so the lease represents a significant expansion for the company. 8x8 expects to be able to move into the new offices sometime in early 2019, Ramesh said.

8x8 also has a right of first refusal to lease a second under-construction building at Coleman Highline, Ramesh said. That building totals 195,000 square feet, according to CBRE.

"We definitely have the opportunity to expand there" at the company's future headquarters site, Ramesh said.

For the full story, go to The Mercury News.

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