NetSuite, GoPro Go Big in San Mateo
Software giant NetSuite (NYSE:N) and wearable camera maker GoPro (NASDAQ: GPRO) will each expand by about 49,000 square feet in buildings next door to each other – 2955 Campus Drive and 2855 Campus Drive, respectively. Both deals involved the brokerage DTZ, which confirmed the agreements.
For NetSuite, the deal gives the software company 165,000 square feet total at its Campus Drive buildings, where it has grown tenfold over the last a decade. It becomes the only tenant in the building that bears its name now that Wize Commerce Inc. is moving out.
“NetSuite will continue to grow here. We were able to take control of our headquarters building and become the sole tenant and bring more branding and identity to that building,” said Larry Burnett, NetSuite’s director of global real estate.
He said the company likes its San Mateo headquarters because it’s a “very central location to pull people from the city, Peninsula, South Bay and East Bay.”
The city of San Mateo is in the middle of the pack among San Mateo County’s office submarkets. Its $55.80-a-square foot Class A asking rents surpasses north San Mateo County cities like Daly City and San Bruno, but it’s dwarfed by Redwood City, Menlo Park and Palo Alto.
GoPro, which went public last year, currently leases nearly 200,000 square feet at its San Mateo headquarters, Clearview Office Park. The 49,000-square-foot expansion at 2855 Campus Drive is just on the other side of State Route 92.
The company has searched for more space since it started to outgrow its San Mateo home. This appears to be a short-term fix, said Tim Grant, a Peninsula broker for Avison Young.
GoPro has typically exceeded Wall Street’s earnings expectations since it went public, and expects four straight quarters of shipping at least one million cameras.
“In the long run, they’ll need much bigger space I think,” said Grant, who wasn’t involved in the deal.
Another market source said GoPro’s most recent lease would go through 2018 and cost the company about $45 a square foot each year. GoPro couldn’t be reached for comment. The company also subleases space at 235 Second St. in San Francisco.
NetSuite, which employs 600 workers in San Mateo, sells software that specializes in accounting, e-commerce and manufacturing.
Hudson Pacific Properties and Farallon Capital Partners bought its 492,000-square-foot complex – 2955 Campus and 2929 Campus Drive – in March. NetSuite says it will split paying for building upgrades with the landlords.
“We’ll be building a customer experience center here, which is an exciting thing for the company. It’s the most interesting thing I’m going to build,” Burnett. it’ll be a center focusde on explaining what NetSuite can do for its customers and increase our ability to tell that story.”
NetSuite’s revenue grew 34 percent last quarter compared to the previous year. But it still posted a slightly larger net loss (nearly $23 million) than the previous year, according to its latest Securities and Exchange Commission filing.
Burnett said the company is growing faster worldwide than it is in San Mateo “but we have a global business so we’re trying to build it up in a lot of diff markets.” He declined to disclose the company’s hiring targets over the next few years.