Drawbridge Extends Full-Building Lease with Microsoft Unit in Santa Clara
Why this matters
Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- Disclosed office deal value tracked in September 2026: $9.1B across 42 reported transactions. All Office coverage →
Computed from Real Estate Trail’s own tracked coverage
Drawbridge Realty has extended a lease with Microsoft for the entire 66,106-square-foot Class A office building located at 3201 Scott Boulevard in Santa Clara. The property has been home to Fungible, Inc., which was a…
External link. Real Estate Trail does not republish source content.
Related coverage — Office
U.S. Dermatology Partners Opens New Office in Liberty Hill, Texas
New Liberty Hill Location Expands U.S. Dermatology Partners' Central Texas Network to Serve the Region's Growing Communities LIBERTY HILL, Texas, Sept. 16, 2026 /PRNewswire/ -- U.S. Dermatology Partners is pleased to…
Nearwater Capital Exits One Vanderbilt for Redeveloped 245 Park Ave.
Specialty finance company Nearwater Capital is relocating from SL Green Realty Corp.’s One Vanderbilt into a 37,563-square-foot lease for the entire 28th floor at 245 Park Ave., SL Green’s newly redeveloped office tow…
George Soros Puts Argonaut Building on the Market for Roughly $100M
Another Manhattan office building has hit the market. This time it’s the landmarked Argonaut Building , an approximately 140,000-square-foot office and retail building at 224 West 57th Street in Midtown. George Soros…
IMG Worldwide Renews 90K SF at SL Green’s 304 Park Avenue South
Global talent agency IMG Worldwide has renewed a 90,202-square-foot slice of its office lease at 304 Park Avenue South between East 22nd and East 23rd Streets in Midtown South. IMG arrived at SL Green Realty ’s 12-sto…
Nearwater Management Takes 38K SF at SL Green’s 245 Park Avenue
Nearwater Management did not have to look far for a new office. The asset management firm is moving within SL Green Realty ’s portfolio from One Vanderbilt to 37,563 square feet on the entire 28th floor at 245 Park Av…