New Office Refi on Renovated Property Speaks to High-Quality Demand in Silicon Valley
Currently, the office tenant in Silicon Valley is demanding tech space and an amenity-rich environment, resulting in tighter availability in the market.
One office property in the area, The Atrium at Lakeside in Santa Clara, California, landed a $16.5 million cash-out refinancing in a deal announced recently by Priority Capital Advisory.
The 99,300-square-foot multi-tenant office building at 2880 Lakeside Drive is centrally located in Silicon Valley and is currently 85% occupied.
It is the only renovated multi-tenant office building in the immediate area. The financing was executed on behalf of the ownership, Miramar Capital.
Zachary Streit, founder and president of Priority Capital Advisory, announced the closing.
Situated on 4.11 acres, the three-story property features a renovated lobby, outdoor common areas, 351 surface parking stalls, EV charging stations, a fitness center with lockers and showers and AT&T fiber and WiLine broadband connectivity.
"The Atrium at Lakeside is uniquely positioned to benefit from the continued transformation of Silicon Valley's office market, combining a highly strategic Santa Clara location with modernized amenities, strong existing tenancy, and proximity to major technology and AI employers," Streit told GlobeSt.com.
"As NVIDIA and other leading technology companies drive office demand, the property stands out as a well-located, renovated asset in a market where high-quality office space is increasingly commanding tenant attention."
Santa Clara's office market in mid-2026 is showing signs of stabilization after several years of softness, according to a recent report from Kidder Mathews.
The vacancy rate declined to 16% in the second quarter, down 170 basis points from a year earlier, while total availability held at 16.5%, also lower than last year.
Leasing activity reached 1.9 million square feet in Q2, bringing the year-to-date total to 4.9 million square feet, which is nearly 35% higher than the same period in 2025. Net absorption was positive at 863,000 square feet for the quarter, marking the fourth consecutive quarter of gains and a sharp turnaround from the negative absorption seen in 2025.
Asking rents averaged $4.99 per square foot on a full-service basis, up 6.6% year-over-year, reflecting steady pricing momentum even as tenants remain selective. Class A rents are commanding a 56 cent per square foot premium at $5.55 per square foot.
No new office projects were delivered in the quarter, underscoring the limited construction pipeline, while investment sales totaled 1.4 million square feet at an average price of about $454 per square foot.
Overall, Santa Clara's office sector is benefiting from large renewals and commitments by major tech tenants, but the recovery remains uneven, concentrated in high-quality assets rather than a broad-based rebound.
Santa Clara Square, the submarket's main demand driver, is a five-minute walk from the property. The 93-acre mixed-use project features approximately 1.86 million square feet of office space, 178,000 square feet of retail and 1,840 residential units, creating a highly activated live-work-play environment.
Pacific Catch, Il Fornaio, Fleming's Prime Steakhouse and Starbucks, as well as a Whole Foods Market grocery anchor, are among its retail tenants.
Source: GlobeSt/ALM