AMD May Leave Sunnyvale Building After Almost 40-Years
Samuel Wan / 2 years ago
Shedding large capital assets has been one of the ways AMD has continued to raise money to fund operations. Back in 1995, the company sold off their Sunnyvale campus for $95 million and has been leasing it back ever since. According to the latest reports, there are reportedly plans for AMD to leave the premises and level the building to create luxury apartments on the land. The silicon company has been on the campus since 1977.
Right now the sprawling 32.5-acre site and 319,000 square-foot campus which is far too big for the less than 1000 staff at the location. AMD has cut a lot of staff over the years and is under 10,000 globally right now. The apartment developer is the New Port Beach CA-based Irvine Company who has approached the New York-based W.P. Carey owners with the apartment development deal.
Luckily for AMD, there is no way they will get kicked off involuntarily. The company has a lease until December 2018 and then 2 more ten-year extension options at that point, meaning it could stretch things out till late 2038. Fortunately for Irvine, AMD probably won’t be exercising those options. There are plans to find a smaller and cheaper HQ around 175,000-225,000 square feet for a 30-45% reduction in office space.