N
etgear is downsizing its headquarters by leasing a two-story office building in north San Jose. The company signed a lease for the 89,400-square-foot building at 3553 North First Street, which will become its new hub when its current lease expires in October. This move represents a net reduction of 53,300 square feet from its current 142,700-square-foot office space.

    The building was purchased by Alvarez & Marsal Capital Real Estate for $24.5 million in 2022, after being sold by the Santa Clara County Housing Authority at a loss. The deal is part of a larger trend in Silicon Valley, where vacancy rates have hit 22 percent in the third quarter. Other major tech companies are also expanding or relocating in the area, including Nvidia and Amazon.

    Nvidia recently leased a 100,600-square-foot building in north San Jose, while Amazon has signed a licensing deal with WeWork for 217,000 square feet of offices in Mountain View. Snowflake has also subleased 773,000 square feet of offices from Meta in Menlo Park, the largest Bay Area office lease in over a decade. These deals suggest that the office market may be rebounding after a period of decline due to remote work.