As San Francisco commercial occupancy reached an all-time low in the last couple years amid the pandemic, a new reality has set in for Silicon Valley.
Major tech players are looking to sell their expansive corporate campuses in the area, or reconsidering new developments.
Intel Corporation — the cloud computing, data center and semiconductor chip manufacturer — is aiming to sell its 505,000-square-foot office at 101-141 Innovation Drive, The Post can confirm.
While a listing price is not publicly available, the building is valued at $193 million, according to The Real Deal.
“As a hybrid-first company, we are continuing to assess and optimize our space utilization to create more vibrant workspaces for our employees when they are on-site, while also achieving cost reductions,” Addy Burr, with Intel Corporate Communication, told The Post in a statement.
“As such, we will consolidate Intel’s San Jose Innovation Campus with our Santa Clara Mission Campus.”
Comprising four buildings, Intel, in return, is offering a leaseback for approximately 12 to 24 months.
Meanwhile, Analog Devices — specializing in data conversion and signal processing — is also seeking a buyer for its 320,000-square-foot campus in Milpitas, located 15 minutes from the Intel building.
The company is also not publicly disclosing the asking price — however, it’s valued at $32 million, according to TRD.
Made up of five separate buildings, they were built in the 1980s.
The Post has reached out to Analog Devices for comment.
While vacancy rates have contributed to the clearing out of Silicon Valley, the recent events that have transpired with Silicon Valley Bank have continued to shake the industry.
Approximately 21% of SVB’s commercial loans were for office properties.
Investors are still assessing the bank’s takeover by federal regulators, which left its $2.6 billion commercial loan portfolio in a brief limbo.
Luxury condo prices in the heart of downtown San Francisco have plummeted as well, as drug abuse and crime have spiraled out control — and as many techies continue to work remotely.
The median sale price of a two-bedroom condo, for example, has fallen nearly 20% since 2021, while sale prices in surrounding areas have slipped only 7%.
Meanwhile, Google recently announced that it, too, was reconsidering the timeline for its Downtown West project in San Jose that was in the works.
The plan is now expected to take years and could set the precedent for other Downtown plans, where a slew of business shutdowns from the pandemic created the remote work trend.
Last month, Google cut more than 6% of its workforce, which equates to 12,000 jobs.
The company joined other tech giants, including Microsoft and Amazon, that have handed out pink slips during a major slump within the tech sector.
Overall, the office vacancy rate increased from 18.6% to 19% quarter-over-quarter, and the market had 17.2 million square feet of vacant space available.
The end of 2022 marked the 12th consecutive quarter in which the overall vacancy rate has risen, increasing by 9% since the first quarter of 2020, according to a report by Cushman & Wakefield.
Ex-Brit turned Manhattan resident since 2008.