ADOBE DOUBLES DOWN

HyattAdobe Systems said it will expand again, adding a fourth tower across the street from its downtown San Jose headquarters.

Pending completion of its property purchase at 333 W. San Fernando St., Adobe intends to add capacity for another 3,000 employees here and 5,000 total new employees across all its locations. The three current downtown towers built in 1996, 1998 and 2003 hold about 2,500 employees, each averaging 300,000 square feet.

“The San Fernando (Street) site is one of the closest available properties to our campus, and that proximity makes it most desirable,” said Scott Ekman, Senior Director, Global Workplace Delivery for Adobe. “Most of our employees work in a highly collaborative setting, and maintaining a work environment that supports that continued collaboration is critical.”

Steadfast on its desire to stay downtown, Adobe considered a number of sites, and started negotiations with owners Wolff Urban Development and JP DiNapoli Companies about a year ago. Previously, Adobe had acquired and entitled the 8.3-acre San Jose Water Co. site on Santa Clara Street, but sold that in 2015 to Trammell Crow for $58.5 million.

“We came to the conclusion that the SJ Water site property was a little too far from our current towers to maintain the presence we have enjoyed for 20 years,” Ekman added.

Adobe, which plans to get through the development process as fast as it can, will wait for the land purchase to be completed before offering a design and timeline, and expects to share that information sometime in 2018, Ekman said.

Meanwhile, sticking to its vow for employees to stay close and to accommodate its 30 percent global employee growth the past two
years, Adobe announced a few days later a 65,000-square-foot, five-year lease in 10 Almaden. The company expects to move into the leased space in November while undergoing office renovations in its current towers.

Accounting for the computer software giant’s growth is the successful transition of its software packaging to the cloud, expansion in the digital marketing category and several acquisitions, including that of Emeryville-based TubeMogul.

“Expanding our facilities will allow us to hire additional talent to research and build products, serve our customers and continue to grow across virtually every part of our business,” said Donna Morris, executive vice president of Customer & Employee Experience at Adobe.

Adobe’s news is the second major tech announcement in as many months that have grabbed headlines for downtown. Last month, the city entered into exclusive negotiations with Google for several land parcels on the westside of downtown with the potential for 8 million square feet of new offices.

Mayor Sam Liccardo lauded Adobe for its pioneering efforts investing in downtown. Today, more than 150 tech companies are downtown.

Adobe also noted it plans to expand facilities in San Francisco, Emeryville and Orem, Utah.