SUNNYVALE -- LinkedIn said Wednesday night it has struck a deal to lease a yet-to-be-built campus that could accommodate nearly 3,000 employees in a major expansion for the social networking powerhouse.
In a new regulatory filing, LinkedIn said it anticipates moving into the new campus in July 2014. The company agreed to a lease that will extend into 2026, according to the filing.
"This is wonderful that LinkedIn has chosen to come to the city of Sunnyvale and bring many employees to the city," Sunnyvale Mayor Anthony Spitaleri said. "A lot of major technology companies have expanded and moved into Sunnyvale.''
The campus could accommodate 2,900 workers. LinkedIn leased 580,000 square feet at 555 N. Mathilda Ave., said Phil Mahoney, an executive vice president with Cornish & Carey Commercial, which arranged the lease.
"There is no question, this is going to be an expansion for LinkedIn," Mahoney said. "They have agreed to a long-term office lease."
San Jose-based JD Dinapoli Cos. owns the property and will develop the site. Dinapoli will tear down some smaller existing buildings to construct the future campus.
The company is headquartered in Mountain View and is expanding its space there by 70,000 square feet.
"We anticipate the company's headquarters remaining in Mountain View," said Erin O'Harra, a spokeswoman for LinkedIn.
LinkedIn produced $724 million in revenue over the 12 months that ended in
"We needed additional buildings to accommodate the growth of the company, so we leased additional space in Sunnyvale," O'Harra said.
Other tech giants have struck deals to expand into Sunnyvale, in some cases for the first time. Mountain View-based Google (GOOG) and Cupertino-based Apple (AAPL) are among those that are making their first major forays into Sunnyvale.
The presence of these new companies has spin-off effects on the region's local economy.
"These deals are going to help retailers, they will help encourage people to build new hotels in Sunnyvale," City Manager Gary Luebbers said. "Sunnyvale has been quite a sleeping giant until now. That has changed now."
More big companies are looking for expansion deals in Sunnyvale.
"The LinkedIn deal is just one that fits into the pattern of the growth in Silicon Valley," Mahoney said. "Silicon Valley is experiencing growth unlike any other technology region in the United States."
Contact George Avalos at 925-977-8477. Follow him at twitter.com/george_avalos.