Cloud company Box moving to Redwood City: Lease deals takes up entire 334,000-square-foot Crossing/900 project downtown

Financial details of the 12-year lease were not disclosed but Box will occupy the first building in the third quarter of 2015 followed by the second in early 2017.

Kilroy Realty Corporation owns 93 percent of the building in comparison with private developers Hunter/Storm LLC.

Both the developers and city officials lauded the lease signing for both downtown Redwood City and the overall Bay Area job market. Mayor Jeff Gee said the occupancy is exactly what the city had been aiming for with its planning.

“The Box lease represents a major milestone in realizing the community’s desire for a vibrant downtown neighborhood that includes a mix of uses and tenants — the vision of our Precise Plan,” Gee said in an announcement of the deal.

Pete McGoff, Box senior vice president and general counsel, said the company is thrilled at the relocation.

“This new headquarters will provide us with a strong foundation on which to continue our aggressive growth strategy and recruit world-class talent,” McGoff said in a prepared statement.

Crossing/900 will include 5,000 square of retail space, structured parking and an elevated terrace. The campus sits within walking distance of downtown Redwood City’s shops and restaurants and more than 1,500 residential units currently under construction.

Currently, the downtown vacancy rate is about 2 percent to 3 percent in contrast to the rest of the market which is 8 percent to 10 percent, said Sean Brooks, Redwood City’s economic development manager.

“What we’ve seen even before this deal is the demand for more,” Brooks said. “Developers are lining up right now as well as for housing.”

With Box likely bringing north of a 1,000 employees to the city, Brooks said area restaurants and businesses stand to benefit, too.

michelle@smdailyjournal.com

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