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n a significant move, Microsoft has purchased a 33-acre campus in Mountain View, California, from a low-profile real estate investment trust (REIT) for $330 million. This acquisition signifies Microsoft's deepening roots in Silicon Valley, where it has already established a substantial presence with approximately 2,000 to 3,000 employees occupying 640,000 square feet of office space. The purchase was made from Mission West Properties, as reported by the San Jose Mercury News.
The REIT, based in Cupertino, made the sale shortly after reports surfaced of potential buyers showing interest in the property. The transaction was made entirely in cash, reflecting Microsoft's financial strength and commitment to the region. The campus is located at 1045 La Avenida Street in Mountain View, which underwent major renovations seven years ago.
The property's prime location, situated at the intersection of Highway 101 and State Route 85, provides excellent accessibility via local highways and surface streets. North Shoreline Boulevard and La Avenida Street also serve as convenient access points.
This acquisition is expected to stimulate further activity in the Silicon Valley office market, with the deal ranking as the second-largest this year behind Nvidia's $374.4 million purchase of several office buildings at its headquarters campus in Santa Clara. Nvidia has experienced significant growth as a manufacturer of chips used by AI developers, while Microsoft is a major investor in both Nvidia and OpenAI, the creator of ChatGPT and a key driver of new technology.
The Microsoft deal stands as the second-largest real estate purchase in Santa Clara County this year, based on dollar amount. It is also one of the largest transactions in the Bay Area during 2024.
The Mountain View campus represents Microsoft's most substantial presence in the Bay Area for several years. The company has made additional property purchases in Silicon Valley recently, including acquisitions in Mountain View and vacant land in San Jose.
