Microsoft renews full-building lease at 3201 Scott Blvd.
Drawbridge Realty and Microsoft have agreed to extend a full-building lease for the Class A office building at 3201 Scott Blvd. in Santa Clara, the property owner announced Thursday. The two-story, 66,106-square-foot building sits on 3.5 acres at the intersection of Scott Boulevard and San Tomas Expressway and has housed Fungible, Inc. — acquired by Microsoft in 2023 — since 2016.
The renewal keeps Microsoft as the sole tenant in the building and, according to Drawbridge, provides continuity for the company’s local operations "well into the next decade." The company acquired Fungible in 2023 and has occupied the Santa Clara address for several years.
“We’re delighted to be able to provide Microsoft with continuity and quality workspace at 3201 Scott Blvd. well into the next decade,” said Mike Embree, Chief Portfolio Officer, Drawbridge Realty.
Property background and transaction team
Drawbridge Realty acquired the property in 2012 and later completed a significant renovation of the building. The facility is classified as Class A office space and has been marketed and leased as a single-tenant asset.
- Building: 3201 Scott Blvd., Santa Clara
- Size: 66,106 square feet
- Site area: 3.5 acres
- Stories: Two
- Major tenant: Microsoft (via acquisition of Fungible, Inc.)
Representatives for the landlord and tenant were involved in the renewal process. Jeff Cushman and Walt Stephenson of Cushman & Wakefield represented Drawbridge Realty in lease renewal negotiations, while Alex Lagemann of JLL represented Microsoft.
Local implications
For Santa Clara, the lease renewal preserves an established corporate presence at a visible intersection near the city’s central tech corridor. The property’s proximity to major thoroughfares makes it strategically located for employees commuting within the South Bay. The extension maintains occupancy at a newly renovated Class A asset that Drawbridge invested in after its 2012 acquisition.
While the announcement did not disclose financial terms or the length of the renewed lease, Drawbridge framed the deal as securing long-term continuity and high-quality workspace. The building’s single-tenant configuration and recent renovations position it as a stable asset in the local commercial real estate market.
Deal data
| Item | Detail |
|---|---|
| Address | 3201 Scott Blvd., Santa Clara |
| Building size | 66,106 sq ft |
| Site size | 3.5 acres |
| Stories | Two |
| Previous tenant | Fungible, Inc. (acquired by Microsoft in 2023) |
Local stakeholders — from business owners to municipal planners — often watch full-building renewals as indicators of demand stability in office markets. The renewal signals that at least one major technology company has chosen to maintain a dedicated physical footprint in Santa Clara.
Drawbridge’s statement underscores their strategy of owning and upgrading well-located office assets: the firm said it is "delighted" to continue providing Microsoft with workspace at the site. The announcement did not indicate any planned changes to the building’s use or tenant configuration.
Community members and local officials may look to similar lease outcomes as a measure of Santa Clara’s ability to retain corporate tenants amid evolving workplace trends. The 3201 Scott Blvd. renewal is the latest in a string of transactions that will shape the inventory and occupancy profile of the city’s office stock.
Representatives for Drawbridge and Microsoft provided the details of the renewal and the leasing teams; further specifics about lease duration or financial terms were not made public.
