Santa Clara County government has agreed to rent two empty office towers in North San Jose for three decades, a move County Executive James R. Williams says will let the county leave aging buildings and cut long-term costs to taxpayers.
The lease is part of a deal announced Friday by TMG Partners, a San Francisco developer that bought the Skyport Plaza complex together with accounts managed by the investment firm KKR. The 435,000-square-foot property sits at 1650 and 1700 Technology Drive and 50 and 90 Skyport Drive, within two miles of the county's Civic Center offices, according to the announcement.
Empty towers, years of work first
The two eight-story towers, totaling about 393,000 square feet, were built in 2001 and once housed Qualcomm. TMG says they are completely vacant today. Two smaller retail buildings on the site, about 42,000 square feet, are 97% leased to a child care center and a handful of restaurants and cafes that remain open.
The county will not move in right away. TMG says the office buildings will get an extensive renovation first, and the lease is projected to begin in the first quarter of 2029 and run through 2059. The agreement gives the county options to buy the property during the term.
"Our County workforce delivers essential services to our community every day, and we continue to identify ways to consolidate and enhance our facilities portfolio to better support that work," Williams said in the announcement. "By entering into a long-term lease at Skyport Plaza, the County will be able to transition from aging facilities, operate more cost-effectively, and reduce long-term costs to taxpayers."