Newmark Secures Silicon Valley’s Largest Office Sublease1 for Zscaler’s New Global Headquarters2, Marking Turning Point3 in Post-Pandemic Tech Real Estate
SAN JOSE, Calif., May 16, 2025 /PRNewswire/ — The commercial real estate landscape in Silicon Valley just logged its biggest cybersecurity-driven move since 2023. Newmark has orchestrated a landmark sublease for Zscaler, the AI-powered zero trust security juggernaut, spanning 301,163 square feet across two office buildings at 4301 and 4401 Great America Parkway. The deal, hailed as a bellwether by industry analysts, signals tech firms’ calculated return to premium physical spaces—even as hybrid work remains entrenched.
Vice Chairman Mike Saign and Senior Managing Director Rich Hoyt led the brokerage giant’s interdisciplinary team to shepherd the deal—a strategic win for both Zscaler and the Valley. The upgraded facilities, slated to open by summer 2026, will consolidate the cybersecurity firm’s operations into a single hub designed to foster talent retention during a competitive hiring era. With 4,800 employees globally—and annual growth exceeding 30%—Zscaler’s real estate choice mirrors the sector’s high-stakes race to scale. “This isn’t just about square footage; it’s about ensuring Zscaler remains a magnet for innovators,” Saign explains. “Zero trust is no longer a buzzword—it’s a boardroom priority. This space reflects that urgency.”
The move arrives as tech firms recalibrate their physical footprints in the region. While remote work initially sent lease rates plummeting, prime locations near infrastructure and amenities are rebounding. Great America Parkway, Santa Clara’s corporate corridor flanking Levi’s Stadium, offers proximity to retail corridors and transit links—a mix of convenience and prestige that appeals to modern workforces. “A headquarters isn’t merely a cost; it’s a statement,” adds Hoyt. “Zscaler is betting that a centralized culture will accelerate its AI-driven product roadmap in a market where intellectual bandwidth is scarce.”
Zscaler’s Chief People Officer, Brendan Castle, framed the lease as a bridge between digital ambition and human collaboration: “Our technology operates in the cloud, but great engineering and customer support stem from physical synergy. This building symbolizes our belief that solving cybersecurity’s thorniest challenges starts with bringing brilliant minds together—in a place that inspires.”
For Newmark, the win burnishes its dominance in tech-enabled deals. In the twelve months ending March 31, 2025, the firm reported $2.8 billion in revenue, leveraging its 165-office global network to service clients across sectors. Yet in an IBISWorld report rated last quarter, Silicon Valley’s office market faces “long-term headwinds” as corporate landlords grapple with energy costs and commuter patterns. This deal, however, exemplifies tailwinds for specialists catering to hypergrowth niches like secure cloud infrastructure.
Forward-Looking Statements Note
This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual outcomes may diverge materially due to market volatility, regulatory changes, or operational risks. Newmark disclaims responsibility for updates absent legal mandate.
1 Square footage leading in valley
2 Subleases included in count
3 Cue Newmark’s data team
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SOURCE Newmark Group, Inc.
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