Rocket Fuel, led by CEO George John, quadrupled its space in Redwood City.
Rocket Fuel Inc.’s space needs are taking off like — well, a rocket.
(Come on, you saw that one coming, right?)
The advertising technology company, which confidentially filed for an initial public offering back in June, has leased 105,775 square feet at Pacific Shores Center, the 10-building, 1.7-million-square-foot campus in Redwood City. The deal, signed in August, was first noted in a market reportfrom Colliers International.
Its new lease is nearly four-and-a-half times the space it has at 350 Marine Parkway, which I’m told is being offered for sublease.
Rocket Fuel’s deal is another indication —like you needed one — of the IPO-real estate connection. We previously notednew deals that came around the same time as a public offering, with Violin Memory and Gigamon being the most recent examples.
Rocket Fuel, founded in 2008, is taking three floors at 1900 Seaport Blvd., leasing suites 100, 300 and 400. The company will pay an initial monthly base rent of $3.25 per square foot, according to an SEC filing. The tenant improvement allowance is $35 per square foot.
Brokers with Cassidy Turley represented the landlord, Starwood Capital and the Blackstone Group, the filing notes. Cornish & Carey Commercial Newmark Knight Frank represented the tenant.
We first told you about Rocket Fuel IPO filing back in August. The company, which offers up consumer data for the digital advertising market using automated decision-making tools and predictive models, had 405 U.S. workers and 60 overseas as of June 30. (For comparison, a year prior it had 190 and 15, respectively.) It has regional offices across the U.S. and Europe.
The company raised its IPO target range on Wednesday, expecting its 4 million shares to price in a range of $27 to $29.
This latest transaction brings Pacific Shores to 93 percent occupancy, according to some quick math based on available space listed on the Pac Shores website. It’s home to numerous tech companies including Zazzle Inc., Zenprise, Sencha, BroadVision and Informatica.
San Mateo County’s office vacancy was pegged at 12.42 percent in early September, according to Colliers, with average full-service rents clocking in at $3.50.