Jive announce plan to shift official headquarters from Palo Alto to Campbell
Whilst Jive Software’s CEO, Elisa Steele, publicly stated earlier this year at JiveWorld that the company considers that it no longer has a headquarters office (the internal Jive community, Brewspace, is the place where the organisation meets, works and socialises), from a legal and accounting perspective it still needs to have a principal location.
Whilst the organisation was formed in Portland, Oregon, it shifted its HQ to Palo Alto back in 2010 when it was attempting to attract additional VC support and readying for the IPO that came in 2011. This office has been the primary location for Jive’s executive leadership since that time.
However, in recent years the pressure has been on Jive to get to profitability ASAP, and this has put the onus on reducing operating costs wherever possible. This has led to Jive looking to shift away from the extremely expensive real estate in the Bay Area, and to find a location that is still considered close to San Francisco whilst reducing unnecessary costs.
News came this week that this effort has been successful:
On October 25, 2016, Jive Software, Inc. (the “Company”) entered into a lease with Water Tower Fee Owner, LLC (the “Landlord”) for approximately 12,500 square feet of office space in Campbell, California for its new corporate headquarters (the “Campbell Lease”). The initial term of the Campbell Lease is expected to commence on March 1, 2017 and run until June 2022 (the “Term”). The Campbell Lease provides for monthly base rent amounts ranging from $52,680.60 to $61,063.51 as well as a requirement that the Company pay its pro rata share of certain real property taxes, operating expenses and common area maintenance expenses. The Company has the option to extend the lease for one additional five-year term subject to certain increases in base rent, provided that the Company gives notice to the Landlord no earlier than 365 days prior to the expiration of the Term and no later than 270 days prior to the expiration of the Term.On October 28, 2016, the Company separately entered into an amendment to its office lease with TTC Partners, LLC for the Company’s existing corporate headquarters in Palo Alto, CA (the “Palo Alto Lease”) that provides for an early termination of the Palo Alto Lease such that the Company may exit the entirety of the leased premises by March 20, 2017 (the “Amendment”). In connection with the early termination of the Palo Alto Lease, the Company will be relieved of obligations to pay approximately $3.5 million in rent and other payments which it would have been required to pay over the course of the remainder of the term of the Palo Alto Lease, which, prior to the Amendment, was scheduled to expire in March 2020.The Company expects to complete the move of its corporate headquarters by March 2017.
The move sees Jive move approximately 20 miles south from the current location to a smaller site, and frees the organisation from a $3.5 million commitment on the Palo Alto lease, which had more than three years left. Jive will also retain the smaller San Francisco office, and employees can choose to work at either the new site or this city-based office.