A Campbell office complex just sold at what amounts to a clearance price, underscoring how rough the South Bay office market still is and raising real questions about future property tax revenue.
The three-story office property at 2105 South Bascom Avenue, known as Lincoln Court, changed hands this week for roughly $24.6 million, according to The Mercury News. County records show the deal closed on May 8.
That price clocks in at about 59.7 percent below the building’s January 2025 assessed market value, based on Santa Clara County assessment data compiled by PropertyShark. In other words, this is not just a haircut, it is a buzz cut.
Building and leasing details
Marketing materials describe Lincoln Court as a Class A, three-story office complex totaling about 123,692 square feet, complete with a courtyard, conference center and tenant locker rooms, according to a leasing brochure from Colliers.
The brochure lists Colliers and Legacy Partners as the leasing contacts and highlights multiple plug-and-play suites. Translation: the building is still hunting for tenants, and ownership is trying to make it as easy as possible for smaller users to move in.
Market context
This kind of discounted sale is increasingly part of the playbook as Bay Area office owners confront a very different reality than the pre-pandemic boom years. Many tenants are shrinking their footprints, and large blocks of older space are sitting on the sidelines.
Cushman & Wakefield’s Q4 2025 MarketBeat puts Silicon Valley’s overall office vacancy at about 19.4 percent, with the Campbell submarket vacancy at roughly 32 percent, according to Cushman & Wakefield. In that kind of environment, older office product can end up trading at steep markdowns just to clear the market.
The gap between assessed value and sale price is not just a paper problem for the owner. When major commercial properties sell far below their prior assessed values, it can drag down future assessments and, with them, property tax revenue for cities, counties and school districts. The Mercury News reports that experts warn the revenue hit could be significant if more buildings follow the same pattern.
What’s next
County filings identify the buyer as an affiliate controlled by Menlo Land & Capital, with Roger Fields listed among its principals. That points to a classic hold-or-reposition strategy rather than an immediate scrape-and-rebuild.
For now, brokers expect the building to keep courting smaller tenants while the new owner weighs its options: hold the asset and ride out the slump, repurpose part or all of the space for a different use, or try to sell at a later date if and when the office market finds its footing.
