SUNNYVALE — A LinkedIn property deal in Sunnyvale hints at weak commercial property values in a wobbly office market that’s under siege by tech sector job cuts and reductions in space footprints.
IHealth Labs has bought an office building at 880 West Maude Avenue in Sunnyvale, according to documents filed on June 9 with the Santa Clara County Recorder’s Office.
Wizardly Holdings, an affiliate controlled by LinkedIn, a career-oriented social network, sold the office and research building, the county property files show.
IHealth Labs paid $23 million for the building, according to the property records. San Jose-based IHealth offers a number of products, including a COVID-19 rapid test and an array of cutting-edge thermometers.
The building totals about 40,900 square feet, information posted on the commercial real estate website Property Shark shows. The one-story structure occupies 2.6 acres and was built in 1975, according to the website.
In 2015, the LinkedIn affiliate paid $22.4 million for the building.
The two transaction results mean the property’s value has risen just 2.7% in slightly more than seven years, or an average yearly increase of 0.4%. That’s far below the typical annual gain in the S&P 500 of around 7%.
To further drive home the suggestion that property values in this instance are soft, the assessed value of the building as of July 2022 was $25 million, county officials report.
Numerous tech companies have cut jobs or curbed their appetites for office space in the Bay Area.
In contrast, a number of biotech, life science and advanced manufacturing companies have been seeking office and research space for expansion through leases or property purchases.
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