Major sale marks biggest Silicon Valley office transaction so far in 2026
Hewlett Packard Enterprise has sold part of the former Juniper Networks campus in Sunnyvale for $330.8 million, marking the priciest office sale in Silicon Valley so far this year. The transaction transfers ownership of the eight‑story building at 1133 Innovation Way to an affiliate of New York‑based asset manager Bluerock, while HPE will continue to occupy the space under a long‑term lease.
The building involved spans roughly 319,000 square feet. Under the terms of the sale‑leaseback, HPE will lease the Sunnyvale facility through 2047, with an option to extend beyond that date. HPE retains the adjacent campus building at 1137 Innovation Way and continues to hold other Bay Area properties as it reshapes its footprint following the acquisition of Juniper Networks.
What the deal means for Sunnyvale
For Sunnyvale, the transaction consolidates institutional ownership of a high‑profile office campus and preserves HPE’s operational presence at the location for at least the next two decades. Because the company opted for a sale‑leaseback rather than a full departure, employees who work at the Innovation Way site are likely to remain based in Sunnyvale for the foreseeable future.
Local officials and commercial brokers say such transactions can have multiple local consequences: they convert corporate real estate into holdings managed by institutional investors, potentially unlocking capital for the seller while placing property management and leasing decisions in the hands of new owners whose strategies may differ from a corporate occupier’s. In this case, an affiliate of a national asset manager now controls the 1133 Innovation Way building.
- Sale price: $330.8 million
- Building size: ~319,000 sq. ft.
- Address: 1133 Innovation Way, Sunnyvale
- Lease term: HPE through 2047, with an option to extend
Regional context: still active market despite vacancy
Even as office vacancy in Silicon Valley has been easing, the market remains in transition. Vacancy fell to 16 percent in the second quarter — down from 16.6 percent in the first quarter and 17.7 percent a year earlier, according to commercial brokerage data cited in coverage of the deal. Investors and occupiers, especially firms tied to artificial intelligence and other tech sectors, are competing for available space, supporting pricing in selective, well‑located properties.
The HPE sale is the top office transaction in the region this year. Behind it are several large buys, including a $310 million acquisition of Great America Commons in nearby Santa Clara and Apple’s $162.2 million purchase of 684 West Maude Avenue in Sunnyvale. Those deals reflect continued institutional interest in Valley offices even as the overall market adjusts from pandemic‑era changes in workplace patterns.
| Property | Location | Price | Size |
|---|---|---|---|
| Former Juniper campus building (sold) | 1133 Innovation Way, Sunnyvale | $330.8M | ~319,000 sq. ft. |
| Great America Commons | Santa Clara | $310M | — |
| 684 West Maude Ave. | Sunnyvale | $162.2M | — |
HPE’s move is part of a broader corporate repositioning that accelerated after its acquisition of Juniper Networks last year for $14 billion. The company relocated its headquarters from the Bay Area to near Houston in 2022 and has been managing its Silicon Valley footprint since, keeping an office at 6280 America Center Drive in San Jose even as it trims other holdings.
In statements to local business press, HPE described the sale as consistent with its ongoing real estate management strategy. The sale‑leaseback structure allows HPE to monetize an asset while maintaining operational continuity for employees and customers who rely on the Sunnyvale campus.
What to watch next
For Sunnyvale residents and local businesses, the key items to monitor are any future leasing decisions by Bluerock’s affiliate and whether the new owner pursues renovations, leases additional space to other tenants, or repositions the property for different uses. With office vacancy gradually improving, buyers and owners will be closely watching demand from startups, established tech firms and service providers for signs of sustained recovery.
As large institutional players acquire Valley properties, municipalities will continue to evaluate how changes in ownership and occupancy affect local tax revenue, traffic patterns and downtown activity. For now, the sale at Innovation Way stands as the largest local office transaction of the year and a notable sign that capital is returning to select Silicon Valley office product.
