Drawbridge Realty has extended its full-building lease with Microsoft at 3201 Scott Boulevard in Santa Clara, where the tech company occupies a 66,106-square-foot Class A office property. The two-story building, which spans 3.5 acres at the intersection of Scott Boulevard and San Tomas Expressway, continues to serve as premises for the team that originated with Fungible, Inc., a business acquired by Microsoft in 2023.
The property has been associated with Fungible since 2016, and its transition into Microsoft’s portfolio followed the 2023 acquisition. With the lease extension, Microsoft is committing to remain in the building well into the next decade, maintaining continuity for the existing operation at the site.
Drawbridge originally acquired 3201 Scott Boulevard in 2012 and later carried out a significant renovation of the asset. The upgrades positioned the building as a modern Class A office environment, and the current lease extension underscores its continued role as an institutional-quality corporate facility.
Drawbridge’s Chief Portfolio Officer, Mike Embree, noted that the extended agreement allows the firm to continue providing Microsoft with a high-quality workspace at the Santa Clara address for years to come. His comments emphasized the landlord’s focus on long-term relationships with major corporate tenants and on sustaining the performance of its office portfolio.
Leasing negotiations for the renewal involved multiple brokerage teams. Cushman & Wakefield represented Drawbridge Realty, with Jeff Cushman and Walt Stephenson leading the assignment on behalf of the landlord. Microsoft was represented by Alex Lagemann of JLL, reflecting the participation of national brokerage platforms on both sides of the transaction.
The combination of a global technology tenant, a fully leased Class A building, and an extended term into the next decade highlights the importance of stabilized, institutionally held office properties in Santa Clara’s corporate landscape. While financial terms and specific lease duration were not disclosed, the decision by Microsoft to keep a full-building presence at 3201 Scott Boulevard signals ongoing utilization of this location within its broader real estate footprint.
