A new office building in San Jose has signed a fast-growing fintech company as its first tenant, lighting up a ray of hope for the Bay Area’s struggling office market. The building, called One Santana West, located next to Santana Row, a mixed-use neighbourhood developed by the Federal Realty Investment Trust, has leased out 29,000 square feet to Acrisure, a financial technology and insurance company.
Acrisure’s decision to sign on as the inaugural tenant at One Santana West was influenced by the building’s amenities and its proximity to Santana Row, which is a hub of restaurants, shops, offices, homes, hotel rooms and entertainment venues, according to Jennifer Anderson, managing partner with Michigan-based Acrisure. The company plans to consolidate eight existing offices in Northern California into the new regional headquarters site in San Jose. Therefore, offering not just state-of-the-art workspace but also a conducive environment for employees to enjoy breaks and bond, building the organisation’s culture.
The developer, Federal Realty Investment Trust, had initially hoped to attract one or two major tech firms to lease the entire 375,000 square-foot building when it launched the development of One Santana West. However, in the wake of Covid-19, which led many tech companies to cut jobs, sublease offices and curb their appetite generally for new workspaces, Federal Realty Investment Trust had to change its strategy. The company decided instead to offer smaller chunks of space in One Santana West to attract multiple tenants.
Acrisure’s decision to lease a portion of the office’s second floor is viewed as a major positive for the development. The tenant expects to move approximately 150 workers into the new office in mid-April. Acrisure has been on the fast lane of growth, with its revenue skyrocketing from $38 million in 2013 to $3.5 billion in 2022. The company expects its revenue to hit $4.4 billion in 2023 with the help of the new office in One Santana West.
