District 237 The new leasesat District 237 were completed in less than six monthspost-renovation.

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SAN JOSE—District 237, formerly Corporate Technology Centre, afive-building 415,000-square-foot office campus, has beenrepositioned and rebranded. The newly renovated look and amenitiesare in line with today's tenant demands, says Erik Hallgrimson,vice chairman for Cushman & Wakefield.

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The repositioning resulted in a combined total of 314,710 squarefeet in new leases with three global companies, all of which werecompleted in less than six months post-renovation. District 237'snew leases include a new long-term lease for 142,710 square feetwith Raytheon, 96,000 square-feet to NXP Semiconductors and 76,000square-feet to CDK Global.

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District 237 is located at 350, 300, 250, 200 Holger Way and 100Headquarters Dr. The asset is owned by KBS Real Estate InvestmentTrust II.

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"Our ability to lease four out of the five buildings within thecampus in such a short period of time is a true testament to howthe project was repositioned to appeal to those firms activelylooking to upgrade their facilities and enhance their ability toattract talent in this competitive environment," says BrentCarroll, KBS senior vice president and asset manager of District237. "We are also in talks with several companies to lease thefinal fifth building at 100,000 square feet, which we anticipatewill be leased quickly as well."

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According to Carroll, a key differentiator for KBS wascommitting the necessary capital required to update the officepark's exteriors, install new modern landscaping and fully buildout one of the buildings, similar to the model home approach usedby residential developers.

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"Rather than white boxing the five buildings, we took onebuilding and completely built out the interior which included amore open layout, updated common areas, a new tenant lounge,fitness center and private outdoor amenity areas that we believedwould drive new leasing activity by infusing new energy into theproject," he says. "We took a unique approach at District 237 bycreating a large amount of square footage in spec space, which wasvery successful. Many office owners are incorporating spec spaceinto their assets; however, not many are incorporating it at thishigh level. Because of this, we saw an influx in leasing activityand were able to attract a variety of top companies that werelooking to lease large amounts of space within the campus."

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Driven mostly by the tech sector, job growth in the San Josemetropolitan area increased by 32,400 jobs in 2019, according to afourth quarter 2019 report from Cushman & Wakefield. Thisbrings regional employment to 1.2 million.

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"San Jose continues to benefit from Silicon Valley's thrivingeconomy and remains a key market for some of today's top techplayers," says Rod Richerson, KBS regional president, WesternUnited States. "This asset is located within 15 minutes of SanJose's CBD near a new BART station and is surrounded by qualityretail and entertainment. The renovations we implemented created acampus feel with unbeatable access to the freeways."

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The team representing KBS in the leases included Hallgrimson,Kelly Yoder, Jeff Cushman and Steve Horton of Cushman &Wakefield.

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"KBS is a forward-thinking owner and this is demonstrated in thecaliber of office properties they offer," says Hallgrimson.

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Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.