Super Micro Expands San Jose Footprint with $43 Million Acquisition from Lumentum

Super Micro Computer expands its Silicon Valley footprint with a $43 million purchase of two San Jose office buildings from photonics company Lumentum.

By: AXL Media

Published: Mar 10, 2026, 5:43 AM EDT

Source: The Real Deal

The Transaction and Asset Overview

The deal involves two low rise structures located at 1733 and 1745 Fox Drive, encompassing a total of 116,000 square feet. At a purchase price of approximately $371 per square foot, the acquisition reinforces the current market valuation for functional R&D and office space in North San Jose. Lumentum, which originally acquired the 1980s era buildings in 2019, had utilized the facilities for a combination of corporate offices, research and development, and manufacturing support. This sale allows Lumentum to streamline its physical assets following its high profile partnership with Nvidia.

Super Micro’s Aggressive Scaling Strategy

The acquisition is the latest move by Super Micro Computer to consolidate its presence in the immediate vicinity of its Rock Avenue headquarters. CEO Charles Liang noted that the company is moving rapidly to scale domestic production of advanced AI infrastructure. This purchase follows a consistent pattern of expansion, including a $13.3 million acquisition of a nearby Ridder Park Drive property last September. By securing contiguous or nearby assets, Super Micro is effectively building a massive, localized tech campus to support its manufacturing and engineering requirements.

Regulatory and Competitive Landscape: The AI Space Race

While major tech firms globally have fluctuated on office mandates, AI driven companies are moving in the opposite direction, aggressively absorbing available square footage in Silicon Valley. The regional office vacancy rate in North San Jose currently sits at 16 percent, but the "flight to quality" and the specific technical requirements for AI hardware development have created a competitive environment for specialized R&D flex space. Super Micro’s move secures critical real estate before further tightening occurs, positioning the firm ahead of competitors who may be slower to transition from remote models to physical production hubs.