SUNNYVALE — Walmart has signed a massive South Bay office lease that provides the retailer’s e-commerce unit with enough space for well over 1,000 tech workers in a hopeful sign for the Silicon Valley market.

The retail titan’s e-commerce unit signed a lease for 338,300 square feet at Tech Corners, a Sunnyvale office complex developed and owned by one of the Bay Area’s veteran real estate companies, Jay Paul Co.

The Club, an amenities building in Tech Corners, an office campus whose addresses include 11th Avenue in north Sunnyvale. 

The Walmart tech organization will occupy two buildings through the rental agreement. Newmark commercial real estate executives Phil Mahoney and Mike Saign represented property owner Jay Paul Co., while commercial real estate firm Colliers represented Walmart.

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“This lease reflects the enduring appeal of Tech Corners, a premier Class A campus with a legacy of full occupancy,” said Mahoney, an executive vice chairman with Newmark.

Walmart could potentially employ 1,300 to 1,700 tech workers in the two buildings the company has leased. The number of workers officially planned for the buildings wasn’t immediately known.

“We are excited to welcome Walmart Inc. to the Jay Paul portfolio and to join our other marquee tenants we value,” said Janette D’Elia, chief operating officer with Jay Paul Co.

With the new lease at Tech Corners, Walmart is greatly expanding its presence in northern Sunnyvale, following the company’s lease of a four-building campus on Crossman Avenue in 2023.

The office buildings that Walmart leased have addresses of 803 and 815 11th Avenue in Sunnyvale, according to Newmark and Jay Paul Co.

Walmart is moving into the Tech Corners office campus that Jay Paul Co. developed. The campus totals 957,300 square feet. The complex consists of five office buildings and an amenities hub.

The property emphasizes a wellness theme with fresh-air workspaces, community engagement, and outdoor spaces that include work and social areas, vegetable and floral gardens, and a sports court, according to Jay Paul Co.

Mahoney noted that Jay Paul Co. undertook a significant revamp of the two office buildings Walmart leased. That upgrade was completed this year.

“The recent $30 million refresh delivers a best-in-class, transit-served, plug-and-play environment tailored for scaling companies like Walmart,” Mahoney said.

Walmart’s office transaction represents the largest new office lease — excluding renewals — in Silicon Valley since 2023, according to Newmark brokers Mahoney and Saign.

The transaction is also the second major Silicon Valley office deal in about a month. The Walmart deal was slightly larger than a Zscaler sublease transaction recently.

In early May, Zscaler disclosed that it had signed a rental agreement to sublease from Airbnb two office buildings on Great America Parkway, taking 301,200 square feet through that transaction. Newmark brokers also arranged that transaction.

Walmart itself has been widening its presence in northern Sunnyvale, the section of that city that is north of U.S. Highway 101.

In 2023, Walmart subleased all of a tech campus known as Moffett Green, a four-building office complex that totals 719,000 square feet. That campus is on Crossman Avenue in Sunnyvale.

In April, Walmart officially opened the Moffett Green offices. Potentially, an estimated 3,600 Walmart tech employees could work at the Moffett Green campus.

As for the Walmart deal at the Tech Corners campus on 11th Avenue, Walmart and the other tenants in the complex will have access to an array of amenities.

Among the amenities:

— cardio and weight-training equipment

— group fitness rooms and outdoor exercise areas

— The Club, a fitness and wellness center totaling 22,700 square feet

— full-scale cafes and dining halls

— the Club Annex with workspaces, lounge areas and gaming spaces

— A new retail addition totaling 12,000 square feet is underway.

“We look forward to supporting their (Walmart’s) continued growth in this vibrant, wellness-focused campus,” D’Elia said.