- MDY Properties has listed its 247K SF office building at 3075 Olcott St. in Santa Clara, fully leased to Amazon through 2032, to gauge investor interest in tech-tenanted assets.
- The listing comes amid Silicon Valley’s slow office recovery, with vacancy rates hitting a 20-year high of 15.8% and investor hesitancy still widespread.
- Long-term leases to major tech tenants like Amazon have historically driven top-dollar trades, and this listing could serve as a bellwether for how investors are now valuing such deals.
Testing The Waters
MDY Properties is marketing its Thirty75Tech building in Santa Clara, a 247K SF office development leased entirely to Amazon, reports CoStar. With a lease running through September 2032, the listing will serve as a critical test of whether Amazon tenancy and long-term occupancy by a major tech tenant are enough to attract serious investor interest in an otherwise sluggish market.
A Post-Pandemic Market Litmus Test
Completed in the early pandemic years, Thirty75Tech saw Amazon prelease roughly 85K SF during construction, later expanding to occupy the entire building. Now, MDY is testing how that Amazon tenancy impacts asset value in a region still reeling from tech downsizing and high vacancy.
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Market Backdrop
Silicon Valley’s office market has been among the hardest hit nationally, with vacancy at 15.8%—the highest in two decades and above the national average of 14%. Leasing activity has dropped to levels last seen during the Great Recession, and sublease availability remains a challenge with over 5.3M SF on the market.
Tech Still Draws Investors—Sometimes
Despite market headwinds, single-tenant buildings leased to tech giants have remained among the priciest and most attractive assets in the South Bay. Amazon tenancy may help this listing break through investor caution, particularly as tech companies like LinkedIn and Nvidia have begun selectively reentering the buying market.
Recent Comps
LinkedIn recently paid $74M for a 120K SF office in Sunnyvale, and Nvidia acquired nearby office space for $123M. These deals indicate that the right location and tenant can still attract capital—even in a down market.
Why It Matters
If MDY Properties can land a buyer at a favorable price point, it would signal a vote of confidence in tech-anchored real estate assets and help reset expectations for office valuations in the region. The outcome could provide a new benchmark for Silicon Valley’s path forward.
What’s Next
All eyes will be on how investors respond to this listing. With no price guidance yet revealed, the market’s willingness to bet on Amazon’s long-term occupancy could offer rare clarity in an otherwise uncertain landscape for Silicon Valley office deals.
