Apple Gets Development Approval for 4.15 Million Square Foot Campus in San Jose

Discussion in 'Mac Blog Discussion' started by MacRumors, Jan 27, 2016.

  1. MacRumors macrumors bot

    MacRumors

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    The San Jose city council has approved a development agreement for Apple that will give the company fifteen years to build "a maximum of 4.15 million square feet of space" within an 86 acre piece of land in north San Jose (via Silicon Valley Business Journal). Apple is still ironing out plans on exactly what it wants to do with the massive site, according to Kristina Raspe, senior director of real estate and development for the company.

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    As Raspe pointed out, the San Jose campus will most likely be the focus of a headquarters for R&D and more company offices. Before today's agreement, the 4.15 million square feet of space was slowly purchased or leased by Apple over the past year. This week's development approval by the San Jose city council groups all of the company's previous acquisitions into one large project for the company to move forward with.

    San Jose mayor Sam Liccardo called the agreement "a long time coming" during the council meeting, given Apple's long-awaited entry into the Silicon Valley city. As pointed out by the Silicon Valley Business Journal, if solely built up as office space the new campus could house 16,000 employees for the company. When completed, it will be larger than the existing Infinite Loop campus, as well as the "Campus 2" location currently under construction in Cupertino.

    Article Link: Apple Gets Development Approval for 4.15 Million Square Foot Campus in San Jose
     
  2. Mums Suspended

    Mums

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  3. Junior117 macrumors regular

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    Could someone explain why they're leasing part of the land and not outright buying the entire thing? Wouldn't it just be safer to buy it outright? I assume they'd have to follow the rules of whoever's the landlord in there if they're leasing it.
     
  4. C DM macrumors Penryn

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    Perhaps the current owner is not willing to sell?
     
  5. medazinol, Jan 27, 2016
    Last edited: Jan 27, 2016

    medazinol macrumors regular

    medazinol

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    Just enough square footage to build a car manufacturing plant...
     
  6. Rogifan macrumors P6

    Rogifan

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    I guess that's what companies at their peak do? :D
     
  7. Rocketman, Jan 27, 2016
    Last edited: Jan 27, 2016

    Rocketman Suspended

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    They still need to buy the adjacent properties as well so they have a roughly rectangular piece of land to build a Borg cube on. Literally. Offices need windows. Factories do not.

    Light tubes.
     
  8. thewitt macrumors 68020

    thewitt

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    Apple will not build a windowless factory. They hold their suppliers to tremendously high HR standards, and that includes a healthy work environment.
     
  9. Kaibelf macrumors 65816

    Kaibelf

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    Because it's better to use the space than leave a bunch of abandoned buildings?
     
  10. derbladerunner, Jan 27, 2016
    Last edited: Jan 27, 2016

    derbladerunner macrumors 6502

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    As others pointed out, this is likely for the car/transportation project. It makes no sense (to me at least) to get such a massive site near an airport otherwise:
    • As pointed out by the Silicon Valley Business Journal, if solely built up as office space the new campus could house 16,000 employees for the company. When completed, it will be larger than the existing Infinite Loop campus, as well as the "Campus 2" location currently under construction in Cupertino.
    Support locations can be put anywhere, see the recent Apple projects in Texas, land and wages are lower there:

    http://9to5mac.com/2015/09/07/austin-texas-campus-photos/

    In addition, Apple already has two huge campus locations in Cupertino (they will keep the current one), so why build another one in California?

    Car/transportation project it is imho. Not a car plant, but maybe car R&D, test tracks etc. Or car supply logistics for smaller parts (airport nearby).
     
  11. Mums Suspended

    Mums

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    Is it?
    --- Post Merged, Jan 27, 2016 ---
    So it's a charity move Kaibelf?
     
  12. Kajje macrumors 6502

    Kajje

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    I think they should sell it and give it back to the investors.
     
  13. ipedro macrumors 68030

    ipedro

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    Apple has cash on hand to buy enough land to start a small country :|
     
  14. Mums Suspended

    Mums

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    I have a feeling that cash is being siphoned off via naked short sales.
     
  15. maxsix macrumors 68020

    maxsix

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    It's ironic that just as they're expanding... iPhone sales are beginning to decline. Good thing Apple has reserves.
     
  16. clat22 macrumors newbie

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    #16
    Only a guess...
    In a year of record profits, you offset taxes by making strategic purchases in that fiscal year.

    Time will only tell on peaking. Based off of some of their latest moves in land acquisition, building development, and increased hiring, they are either delusional or have a couple more products up their sleeve and will continue to grow. I am more likely to bet on the latter.

    Again only guesses
    1) only a certain part of the land was for sale, so they bought that and had to lease the adjacent
    or
    2) there may be a property tax threshold that they wanted to stay under. I know of companies that consolidate and then knock down entire buildings in order to avoid city taxes.
     

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