Nearby the Bordeaux Centre site, along Java Drive, a partnership of SCM Properties and Exterra Realty Partners is methodically tearing down a 20-year-old, single-story R&D campus and replacing with four- and five-story class A office buildings. The first phase of Java metro Center is a five-story, 150,000-sf building and a four-level parking garage. Completion is slated for this time next year.
The Sunnyvale projects are in response to that city's plan for increased density around the VTA light rail line. Generally, though, all; three projects are in response to increased demand for mid-rise class A office in a region currently dominated by low-rise industrial-style R&D buildings.
Exterra principal Mike Parker, formerly a partner with Koll Development, told GlobeSt.com in August that there are some six million sf of requirements in play in the heart of the Silicon Valley. CPS Corfac International principal Steve Pace, one of the listing brokers for Exterra's project, said current rates in the area are "about $3 per sf and escalating monthly as supply dwindles in step with the region's expansion of high technology companies" such as Yahoo and Juniper Networks and Network Appliance.
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