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Case Study

SGI secures new Silicon Valley headquarters at below-market rates, reduces occupancy costs 38 percent

​In fall 2012, Silicon Valley based technology leader SGI engaged JLL to assess and relocate their headquarter operations. SGI’s primary objectives were to control costs and improve the workplace environment.

SGI wanted its new facility to reflect its focus on collaboration, client service and talent retention—especially amid a highly competitive high-tech market.

We completed an executive questionnaire, space program analysis and demographic studies to fully understand SGI’s needs and objectives. With this information—as well as market analyses and building evaluations—in hand, we surveyed 92 buildings and toured 13 facilities, ultimately issuing requests for proposals (RFPs) on seven sites.

Following negotiations, JLL helped SGI secure a lease in an ideal location at below-market rates and with $200,000 in annual incentives for five years (total $1 million) from the City of Milpitas. In addition, we negotiated their prior lease exit for one-third of contract cost. In June 2013, SGI’s lease on 900, 940 McCarthy Boulevard was fully executed.

Design and construction followed, and SGI moved into its new headquarters in December 2013—only slightly more than one year after hiring JLL. In addition, SGI achieved a 38 percent reduction in occupancy costs, and $1 million in annual savings over the life of the lease.

“Working with JLL was a wonderful experience—professional, very collaborative, like they were an extension of my team. I’m almost sorry the project is done!” – Mary Clifford, Director, Facilities and Services, SGI

SGI’s new space is modern, open and full of natural light and amenities. Most importantly, it’s highly conducive to collaboration, making the company a place where employees feel engaged and can truly do their best work.

Planning a headquarters relocation or update? Learn more about our Tenant Representation or Project and Development Services. Or, see more about our Silicon Valley office.

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