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stera Labs, an artificial intelligence technology company, is expanding its Silicon Valley operations by leasing a significant amount of office space in north San Jose. The company has taken over 154,200 square feet of a two-building complex at the corner of North First Street and Charcot Avenue, according to Securities and Exchange Commission documents.

    The lease marks a major expansion for Astera Labs, which will triple its current space in Santa Clara. The company also has an option to expand beyond the leased area, including the right of first refusal on the remainder of one building. The office campus totals 224,100 square feet, featuring two four-story buildings and an executive conference center.

    The lease is set to begin in April, pending completion of necessary construction work. It will have an initial term of 7.5 years, with options for two consecutive five-year extensions. Astera Labs raised $713 million through its March 2024 IPO and has seen its shares surge since then.

    This deal represents a positive sign for the South Bay commercial real estate market, which has struggled in recent years. A growing number of tech companies are completing large office rental deals in the region, indicating a potential turnaround.