Located in multiple subleases in a popular business park in Mountain View, Rainfinity had outgrown its current space and found itself needing to quadruple in size. The preference was to consolidate the company into one space. As a result, that market search enveloped the North Peninsula to South Bay commercial markets. Our services were retained to both sublease their current locations and secure a new 30,000 – 40,000 SF headquarter location.
With the commercial real estate market in a frenzy commanding record rental rates, headquarter space was scarce. Additional space in their current location was not an option and Class A space in the area was commanding $6.00 PSF and higher, if it was even available. Being venture capital backed, the company needed to be wise with their capital while at the same time managing the rapid expansion of their company in a timely fashion. In addition, they also needed to sublease their current spaces.
We were able to secure a tenant for close to double their lease obligation. After a thorough and exhaustive search, we focused on a new ± 36,000 SF shell space in North San Jose that was developed by Carr America. Intel also wanted to lease the space. Rainfinity was able to secure the location by offering pre-ipo stock warrants in the company at a pre-determined strike price. This was one of Carr America’s first stock warrant deals! Our involvement helped Rainfinity dispose of current real estate rental obligations at a healthy profit and secure a new, Class A facility in a highly competitive market. In addition, we were able to please the venture capital backers with a reasonable rental rate in a Class A facility. Most importantly, however, we were able to competitively beat Silicon Valley giant Intel Corporation, provide a “space banking” option for future expansion, and consolidate multiple locations into one efficiently space-planned facility.