Home News ByteDance eyes big office sublease deal at San Jose tech campus

ByteDance eyes big office sublease deal at San Jose tech campus

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San Jose — Internet giant ByteDance, whose app includes TikTok, is considering subleasing several large office buildings on the tech campus of San Jose, according to commercial real estate sources.

High-tech companies are discussing subleasing buildings on Coleman Avenue in 1193 and 1199, according to at least five sources with controversial knowledge.

The building under consideration by ByteDance is rented to the legendary internet portal Yahoo !.

Currently, no lease agreement has been signed and there is no guarantee that the transaction will be completed.

The total number of buildings that ByteDance is aiming for is approximately 658,000 square feet.

Verizon, which acquired Yahoo in 2019 and 2017, has signed an agreement to lease the Coleman Highline building.

But in 2021, Verizon sold Yahoo to private equity firm Apollo Global Management.

Private equity firms often seek cost savings as a way to create value and efficiency in their assets and often abandon their ownership of real estate.

Attempting to withdraw from rental space through a sublease can be a tactic adopted by private equity companies to reduce operating costs for acquired companies.

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