Apple has reportedly purchased a large office building located at 10200 South De Anza Boulevard in Cupertino for $70 million, demonstrating the company's ongoing expansion, as well as the current state of the Bay Area office market in the wake of the coronavirus pandemic according to Mercury News.
The four-story office building, positioned roughly two miles from Apple's Cupertino headquarters at Apple Park, became the iPhone maker's property through an all-cash transaction. The property was originally bought in 2019 by San Francisco-based real estate investment firm Rubicon Point Partners, who sold the office building to Apple.
Looking back at the timeline of this office building's value provides a glimpse into the rise and fall of the Bay Area office market. Seagate Technology sold the office building to Rubicon Point Partners for $107.5 million back in June 2019, according to Mercury News, and at the time of purchase, the building seemed like a solid investment considering its proximity to tech giants like Apple and Amazon’s Lab 126. However, the outbreak of the coronavirus just nine months later wreaked havoc on the global economy, and the value of the Cupertino office building dropped to $92.8 million in July 2021 before recovering a bit to $94.6 million in mid-2022, based on documentation from Santa Clara County Assessor’s Office.
Source: Unsplash / Carles Rabada
Apple's purchase of the building represents a 28.4% decline in the property's value over the last four years, reflecting the impact of the coronavirus pandemic on the property market. However, this purchase also emphasizes the ongoing growth and resilience of tech companies, even amidst the challenging economic environment.
In response to the health crisis, numerous technology companies chose to adopt remote working models, which consequently sparked uncertainties over how much physical office space would be needed moving forward. During the government-mandated business shutdowns in March 2020, many office buildings stood empty as corporations transitioned to remote work, relying heavily on various technologies.
Despite the challenges, Apple's acquisition of the 10200 South De Anza office building does hold promise for the future. Based on the property's size, it has the potential to accommodate between 650 and 800 workers, offering much-needed flexibility for the tech giant's staff.
