MILPITAS — A tech giant has sold a big South Bay campus to a veteran real estate firm in a $40 million-plus deal that points to a nosedive in values for Bay Area office buildings.
Analog Devices has sold a five-building office and research campus in Milpitas to an affiliate of Goodman Group, which paid nearly $40.4 million for the five-building tech complex, according to documents filed on April 7 with the Santa Clara County Recorder’s Office.
An office and research building at 720 Sycamore Drive in Milpitas, seen in a Feb. 2025 image capture. (Cushman & Wakefield)
The deal marks the second time in recent weeks that Analog Devices has sold a large office and research property in the South Bay. In February 2025, Analog Devices sold a north San Jose office building at 3550 North First Street for $18.5 million.
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The Milpiitas tech campus that Goodman Group bought totals 319,800 square feet, according to a marketing brochure for the property that commercial real estate firm Cushman & Wakefield was circulating at the time of the deal.
Goodman Group, based in the Orange County city of Irvine, bought the Milpitas campus through an all-cash deal, the county records show.
The deal for the Milpitas office and research properties near the interchange of Tasman Drive and Interstate 880 hints at a nosedive in Bay Area office building values.
The $40.4 million that the Goodman Group affiliate paid was nearly 47% below the estimated value of the five buildings and the land beneath them as of January 2024, as calculated by the Santa Clara County Assessor’s Office.
Jolts caused by slumping property values extend well beyond a survey of the local real estate economy. Property value trends can imperil revenue for an array of public agencies.
If real estate values turn soft in a jurisdiction, that could squeeze a crucial revenue stream for city, county and regional agencies, and school districts.
The office campus was empty at the time of the transaction, according to the Cushman & Wakefield brochure, a reality that would tend to erode the purchase price.
To be sure, Goodman Group could use its big price discount to offer low rent levels to entice tenants to the site.
And since each building occupies a separate parcel, the buildings could be sold off individually to companies that want to own a building where they operate, or to real estate investors.
Yet the real value to a buyer might reside in the 17.3 acres of land beneath the five office and research buildings, indicated the brochure prepared by the Cushman & Wakefield brokers.
“The campus offers the opportunity to redevelop the site to an industrial project, significantly increasing the density on the site,” Cushman & Wakefield stated in its brochure.
Big industrial sites are in relatively short supply in the South Bay, according to the real estate brokerage.
“There is a lack of large, industrial redevelopment sites throughout Silicon Valley,” Cushman & Wakefield stated in the brochure. “Demand from tenants for new, state-of-the-art industrial buildings remains high.”
