Roku, on a mission to cut costs, lists San Jose headquarters building for sublease
Roku is getting rid of its unoccupied office space.
According to the Business Times' review of marketing materials, Roku Inc. listed one of its four San Jose office buildings for sublease.
The streaming company is selling a 163,000 square-foot office at 1143 Coleman Ave., at the Coleman Highline. This massive mixed-use project minutes away from San Jose Mineta International Airport. The space is listed by Paul McManus of Colliers and Blake Zamudio at just under $48 a square foot.
The listing comes six weeks after San Jose's streamlining platform announced it would layoff 6% of its 3600 employees and pledge to sublet or exit unoccupied office spaces in its leased property portfolio.
Roku's five-story building is just one part of the 730,000 square foot space it leases in Coleman Highline where its headquarters are located since 2018. The company also owns three other office building at 1173 Coleman Ave., 1167 Coleman Ave. and 1155 Coleman Ave. in addition to a 23,000 square foot amenities building. There are several leases, including 1143 Coleman Ave., that run until 2029.
According to marketing materials, Roku signed a lease for 1143 Coleman in order to expand its headquarters footprint. It was supposed to move in to the building in early 2021 but never did. The property was therefore a prime candidate for Roku's cost-cutting initiatives announced earlier this spring.
The company is the latest to change its mind about the size of its office space at Coleman Highline. When completed, it will include 1.5 million square foot of space. Yahoo had signed a lease in 2021 for over 600,000 square foot of space. However, after acquiring new ownership, it decided not to use the space. It then subleased the campus, which was owned by ByteDance - the Chinese parent company behind the popular social media platform TikTok.
The uncertain role that office space will play in a post pandemic world did not stop investors from investing in Coleman Highline. Developer Hunter Storm sold 1143 Coleman and 1155 Coleman in the fall 2020 to an affiliate of Blackrock's real estate investment platform. This transaction was valued at $275 million or $770 per sq. ft.
In 2022 it sold the former Yahoo-leased part to AGC Equity Partners (a London-based investor) for $780,000,000 -- or $1,185 per sq. foot. Silicon Valley Business Journal named the sale as one of their real estate deals for 2022.