Digital Realty Talks Investment Strategy, Fremont Portfolio, and Scores New Tenant
For economic developers, engaging the City’s major property owners is just as important for business development as marketing to the industry, developers, and brokers. Understanding investment strategies that drive an owner’s marketing/leasing decisions is critical since we support these efforts. We recently sat down with Digital Realty to talk about its Fremont portfolio, including some exciting new leases and the opportunity that its Ardenwood facilities represent.
1. Digital Realty is known as one of the largest data center facility owners globally. So, what drives the decision to acquire and hold other types of assets — including your buildings in Fremont?
In this case, it is a legacy asset. This was one of our first properties and pre-dates our current focus on data center space. The highest and best use of this campus is to keep it in its current form as office space/R&D/manufacturing, so we are committed to leasing it as such. We had a good tenant, but since it vacated, we are looking forward to securing our next great tenant!
2. To that end, let’s talk about some of the exciting lease announcements you’ve had in Fremont — -Sportvision and more recently, SolarCity.
Sure. Sportvision develops products that enhance sports-viewing experiences across all forms of media. (You know, things like the Virtual Yellow 1st and Ten® Line!) The company relocated from Mountain View to one of our buildings in Ardenwood, which afforded Sportvision the ability to expand into a larger facility at a competitive price. But more important than offering a less-expensive Silicon Valley location, Fremont allows it to draw (and retain) talent from a much broader area, given the City’s central location.
At the other end of town, we own a 200,000 square foot complex that we just leased to SolarCity, which got some great attention. As one of the former Solyndra facilities, we knew that the building’s unique infrastructure was well-suited for high-intensity R&D or manufacturing — and a rare find in Silicon Valley! It’s gratifying to see this reversal of fortunes in the solar industry and to have the nation’s largest solar provider in our building.
3. Your campus in Ardenwood offers a tremendous opportunity to companies looking for high-quality office/R&D space a stone’s throw from the Peninsula. Can you describe its features?
Located right at the base of the Dumbarton Bridge (and about a 2-minute drive from the Menlo Park city limits), at the intersection of Ardenwood Blvd. and Kaiser Dr., Ardenwood Corporate Center totals approximately 307,657 square feet across four buildings. We acquired the complex in 2003, and today, there are about 152,000 square feet available for lease. We’ve recently invested in the buildings to position them for flexibility. With 20-foot ceilings, abundant parking, and power, they can accommodate office space, R&D, manufacturing, or a combination of all three.