According to the Folsom Times, Intel Corporation has announced its plans to sell its Folsom campus and lease back a portion of the space from new owners. This decision is part of a larger cost-cutting strategy in response to significant layoffs and challenges within the industry over the past two years.
The 150-acre campus, located at Prairie City Road and Highway 50, has been an important hub for Intel since it was established in 1984. At one point, it employed approximately 10,000 workers but now houses less than half that number across its office space spanning over 1.6 million square feet including laboratories and testing centers. In addition to this sale-leaseback plan for their Folsom location, Intel also intends on consolidating some of their operations at their Santa Clara headquarters.
The Sacramento Business Journal reports that with this sale-leaseback deal potentially putting hundreds of thousands of square feet up for grabs in terms of office space availability; there may be opportunities for other businesses looking to expand or relocate into this area as well. Todd Eschelman from Newmark’s Sacramento branch stated his belief that “this could be seen as both a positive opportunity for Folsom and surrounding regions despite being initially perceived as negative.”
