The company has leased 140,000 square feet at 900 Arastradero Road at Stanford Research Park in Palo Alto, said a spokeswoman. The deal is a sublease with software company VMware and is the first time the company has taken Bay Area office space south of San Francisco.
The Uber spokeswoman declined to disclose pricing, but a source with knowledge of the building said the asking rent was $78 per square foot, slightly more expensive than the average Class A rent in San Francisco of $72 per square foot.
Uber’s real estate growth has given it one of the largest footprints among local tech tenants, and the Palo Alto expansion will be in addition to two other major projects.
The company purchased the 380,000-square-foot former Sears Building in Oakland last year, where it plans to house 2,000 to 3,000 employees. Uber also plans to break ground in the fall on its Mission Bay campus in partnership with Alexandria Real Estate Equities (NYSE: ARE). The company already has around half-a-million square feet leased in an existing office buildings along Market Street.
With the Palo Alto deal, Uber now has over 1 million square feet of real estate occupied or in the pipeline, and had 1,980 employees in San Francisco as of January, according to San Francisco Business Times research.
Uber’s move into Silicon Valley gives employees another commuting option as transit becomes an intensifying challenge for tech giants amid clogged highways and bridges. Having another outpost could give Uber a recruiting edge for workers who live in the Peninsula or Silicon Valley and don’t want to commute to San Francisco and Oakland. Uber has also hired aggressively in part by hiringengineers at Facebook and Google, and it will now have an office even closer to Menlo Park and Mountain View.
“We are excited to continue investing in our home base by opening a South Bay engineering office in the fall of 2016. This new office will allow us to to grow our teams and continue to attract world class engineering talent to make transportation as reliable as running water,” Thuan Pham, Uber’s chief technology officer, said in a statement.
Brokers Bart Lammersen and Gregg Walker of JLL represented VMware in the sublease, according to marketing materials. It wasn’t immediately clear if a broker represented Uber.
Stanford University owns 900 Arastradero Road, according to property records. Stanford’s department of real estate couldn’t immediately be reached for comment.
The Information first reported that Uber was close to a deal at Stanford Research Park.