SAN JOSE — Infineon Technologies has agreed to a big office lease in San Jose in a deal that suggests the South Bay office market is starting to bounce back from its post-coronavirus economic maladies.
The chipmaker has struck a deal for a large chunk of office space at 6001 America Center Drive in north San Jose, according to a document filed on Jan. 27 with the Santa Clara County Recorder’s Office.
“Infineon has signed a lease for a new office building at 6001 Americas Center Drive in San Jose,” an Infineon spokesperson said in an email the company provided to this news organization.
The tech company agreed to lease about 219,200 square feet in the six-story office building, the county filing shows.
“The new building will offer state-of-the-art facilities for Infineon’s employees in San Jose and for hosting customers and guests in the center of Silicon Valley,” the Infineon spokesperson said.
The 6001 America Center building features an outdoor seating area, fire pits, collaboration spaces, and courts for basketball, pickleball, and other sports. The office building also offers a fitness center and an on-site cafe.
That would appear to equate to the entirety of the six-story office building, which is being marketed to tenants by two commercial real estate firms, Cushman & Wakefield and CBRE.
The building could potentially accommodate 900 to 1,100 workers. Infineon’s San Jose workforce currently operates out of multiple buildings in north San Jose in the vicinity of West Tasman Drive and Champion Court.
“We will be moving our offices to the new site once work has been completed to reflect our needs,” the Infineon spokesperson said.
The office property is one of two buildings that Shorenstein Properties owns in a complex known as America Center West. Cushman & Wakefield executives Steve Horton, Kelly Yoder, and Colin Feichtmeir and CBRE executive Sherman Chan are the leasing agents.
Shorenstein bought the 6001 and 6201 America Center buildings in 2021, paying $235 million for the 30-acre site, which also includes a development parcel.
The Infineon leasing transaction bodes well for the South Bay office market.
“There are a lot of big office deals that are in the works right now,” said David Sandlin, an executive vice president with Colliers, a commercial real estate firm.
In recent years, depressed values and elevated vacancy rates have triggered a spate of foreclosures or sales at steep discounts of office buildings in the Bay Area.
A recent surge of leasing deals suggests that the South Bay office market could be in the early stages of a big rebound from its post-coronavirus maladies.
“It is looking like 2026 will be a very good year for the South Bay office market,” Sandlin said. “And 2027 could be one of the best years Silicon Valley has ever had.”
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