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Original poster
Apr 12, 2001
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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.

appleofficespacesanjose.jpg
"The opportunity to purchase this site came very quickly to Apple," Raspe said, in response to a question from councilman Donald Rocha about the site's ultimate use. "It was something we jumped on without a firm plan. We're still studying the site to determine the best use for us. At this point, it looks like it will be office and R&D."
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
 

Junior117

macrumors 6502
Apr 9, 2015
281
353
Toronto, Canada
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.
 
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C DM

macrumors Sandy Bridge
Oct 17, 2011
51,388
19,440
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.
Perhaps the current owner is not willing to sell?
 
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thewitt

macrumors 68020
Sep 13, 2011
2,102
1,523
Apple will not build a windowless factory. They hold their suppliers to tremendously high HR standards, and that includes a healthy work environment.
 
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derbladerunner

macrumors 6502
Sep 15, 2005
322
78
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).
 
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Mums

Suspended
Oct 4, 2011
667
559
I have a feeling that cash is being siphoned off via naked short sales.
 
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clat22

macrumors newbie
Jun 5, 2008
17
1
Why all the land-grabbing Apple?
Only a guess...
In a year of record profits, you offset taxes by making strategic purchases in that fiscal year.

I guess that's what companies at their peak do? :D
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.

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.
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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