Comments on: Palm and PalmSource Moving to New Locations

The hardware division of Palm Inc. is moving from its Santa Clara offices to three rented buildings in Milpitas, California, which is a bit north of San Jose, according to an article in the The Argus. Despite moving from 144,900 sq. feet to 153,275 sq. feet, the rent will actually be less because of the depressed real estate market in the San Francisco Bay Area. About 650 employees from the Solutions Group will work here. PalmSource, the division that makes the Palm OS, is taking its 250 employees to offices in Sunnyvale, California.
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Good thinking...

mentalsrule @ 8/15/2002 10:50:56 AM #
I'm glad they got the hell out of there where its soo darn expensive to live for not much space,

a new area and more room might benefit them all...

congrats palm on the move.

Ever notice how fast Windows runs?

Neither did I.

RE: Good thinking...
I.M. Anonymous @ 8/15/2002 10:55:46 AM #
Yeah right! good thinking...So it has come to the point where Palm:

1. Sold their own crib

2. Getting kicked out-"moving" out of their current rented crib

3. Moving to a cheaper location/getto

Not "good thinking", but more like desperation

RE: Good thinking...
mentalsrule @ 8/15/2002 11:05:36 AM #
i dont see how you can call it the ghetto...

its to simply cut down costs on things they dont really NEED. they dont need to be in such a high dollar area, they are a freaking company for god sake!.

Ever notice how fast Windows runs?

Neither did I.

RE: Good thinking...
I.M. Anonymous @ 8/15/2002 11:06:35 AM #
You hit it right onto the nail!
They have to else they will have too much to shoulder with its slow sales.
RE: Good thinking...
I.M. Anonymous @ 8/15/2002 12:02:16 PM #
So Milpitas is now a getto? Yeah right, it's right up there with Compton and Snoop dog is their neighbor.

I wouldn't want to live in Milpitas, but I'm not too worried when I drive through it.

RE: Good thinking...
64SlicesOfAmericanCheese @ 8/15/2002 1:02:24 PM #
3Com was reportedly charging rents that were several times the going rate in the valley, so Palm was wise to get out of dodge.

RE: Good thinking...
fleegle @ 8/15/2002 2:52:50 PM #
Believe me, the entire SF Bay Area is an expensive place to live.

I used to live in Milpitas. It is actually a nice place to live, not even close to a ghetto. One bad thing about it was San Jose's open-water sewage treatment plant that was located next to Milpitas. If you had the wind blowing in the wrong direction... whoo-weee! Watch out! :-O

Growing up in the Bay Area, we had a nickname for Milpitas: the armpit of the Bay Area. Both because of the location map-wise (the peninsula being an arm) and that stinkin' sewage treatment plant. :)

There are a lot of "high-tech" companies headquartered in Milpitas. Cisco and Adaptec are a few of them.

Ghetto property being subleased to Palm by Cisco!
I.M. Anonymous @ 8/15/2002 9:29:18 PM #
Ah, yeah.... sounds like a real ghetto....

Did you even follow the link to "The Argus"???? If you had you would have know better than to post such nonsense!

Palm's Milpitas office is in the cavernous McCarthy Center along Interstate 880. The complex has been a ghost town since Cisco Systems Inc. employees moved out last year.

Palm is subleasing three cookie-cutter buildings in the 19-building office park from Cisco, which holds the lease to the property. The sublease is for 153,275 square feet of space and is larger than its 144,900-square-foot headquarters in Santa Clara.

In 2000, Cisco Systems Inc. signed a lease for the McCarthy Center. But as the economy faltered, Cisco scaled back on its move and eventually left the buildings empty.

Sixteen of the park's 19 building are vacant. Cisco hasn't announced what it plans to do with the rest of McCarthy Center, though it has subleased some property to three other tenants who are smaller than Palm.

Palm is the second major tech company to move to Milpitas this year.

Here's some interesting information from John Igoe, Palm's vice president of real estate and site services,

"By subleasing from Cisco, we are strengthening our relationship with them," he said. "This is a great opportunity for both of us to benefit financially and help each other with technology."

It appears from that statement that Palm may be considering incorporating Cisco technology into its future Palm Pilots!


Cost Cutting Exercise

I.M. Anonymous @ 8/15/2002 10:55:39 AM #
This is good as it can reduce down on the daily expenditure which can amount to a fair bit with an operation of such.

Perhaps, it would be good if the rest of the other Palm office in the world can take full advantage of the low property or rental price.

Many companies spent a lot of money when the time was good, economy was blooming. Now that it is not going anyway but down, many branches also have to downsize too.

RE: Cost Cutting Exercise
I.M. Anonymous @ 8/15/2002 11:03:36 AM #
You should see the huge space with only less than 10 persons in palm office in singapore!
RE: Cost Cutting Exercise
I.M. Anonymous @ 8/15/2002 9:51:00 PM #
Yes, Singapore Palm have a *huge* office. They got it when Palm were supposed to be getting the Extended Systems people - but that deal fell through. Now they have a huge, expensive office (Regis) with no one to fill it...!!

Other regional offices aren't nearly so big!!

RE: Cost Cutting Exercise
I.M. Anonymous @ 8/16/2002 1:42:10 AM #
You from Palm Singapore?


I.M. Anonymous @ 8/15/2002 11:24:57 AM #
Could be wrong, but isn't it Sunnyvale?
RE: Sunnydavle?
Xian @ 8/15/2002 11:29:09 AM #
Yeah, it's Sunnyvale. Palm is just a few miles from where I live and work.

Sunnydale only exists in Buffy the Vampire Slayer ;)

RE: Sunnydale?
I.M. Anonymous @ 8/15/2002 11:43:02 AM #
Rumor has it that future versions of PalmOS will contain special vampire-killing technology; users will be able to "patrol" their neighborhoods with special wooden Palm devices (code-named "Hawkins"). However, users are warned that these devices are particularly susceptible to Bluetooth attack.
RE: Sunnydavle?
I.M. Anonymous @ 8/15/2002 1:59:30 PM #
That is very funny.

It should be Sunnyvale. I don't know
their address though. I assume it is not next to
my house.


Hmmm, if they're moving now...

Lungboy @ 8/15/2002 11:38:02 AM #
I seriously doubt that they would move in the middle of a development cycle. So to me, that means that the new units must be ready to go.

Eagles may soar but at least weasles don't get sucked into jet engines.

done and built
I.M. Anonymous @ 8/15/2002 11:41:18 AM #
I noticed when I checked rom dates on the last couple units that they had been burned four to six months before the unit was release on the market. I'm sure what ever they are actually going to roll out first is done and on the shelves, with the second unit (please let it be a color i705x) is being crunched on the assembley line in the next month or so.
RE: Hmmm, if they're moving now...
I.M. Anonymous @ 8/15/2002 11:42:20 AM #
It doesn't say when the move will occur. Indeed anyone worth their salt plans these things in advance, rather than just up and moving.
RE: Hmmm, if they're moving now...
I.M. Anonymous @ 8/15/2002 11:50:37 AM #
You would be surprised, moving is often driven by management as long as 'critical' development is not happening they will move people even durring normal development cycles.
RE: Hmmm, if they're moving now...
Token User @ 8/15/2002 12:06:34 PM #
It doesn't say when the move will occur. Indeed anyone worth their salt plans these things in advance, rather than just up and moving.

Which part of "Palm employees began moving last Friday and will continue to do so over the next three weeks." was unclear? True, the move was probably planned a long time ago. Pity Palm aren't going ahead with their corporate campus - that was a cool design.

I hear Xerox have real estate going cheap at PARC ....

RE: Hmmm, if they're moving now...
I.M. Anonymous @ 8/15/2002 12:25:21 PM #
Right - Our user group meets in the Palm headquarters and we aere told last meeting that it would be the last one at the old location.

Why that ''step between''

Schorsch @ 8/15/2002 5:23:15 PM #
Why do they waste money ?
I allways expectet, that they finaly will move over to Japan.......OIr does the Sony managment like to have a basestation in Silicon Valley?

RE: Why that ''step between''
I.M. Anonymous @ 8/16/2002 8:28:35 AM #

Gain or Loss on Sold Property?

I.M. Anonymous @ 8/15/2002 6:29:33 PM #
>"Palm bought a large piece of land several years ago during the Tech Boom, intending to make it into a corporate campus. When the Boom became a bust, it sold the property last year for about $200 million."

Does anyone know how much Palm paid for this property? I'm curious if they made or lost money on this deal and exactly how much. Did they buy high and sell low???

RE: Gain or Loss on Sold Property?
I.M. Anonymous @ 8/15/2002 8:16:32 PM #
I don't know for sure but they probably lost big on it. Everyone who bought property near Silicon Valley during the Dot Com boom lost big if they sold it after the bottom dropped out of the stock market.

Remember those days? It was the New Economy and the stock market was heading for 30,000. Business plans were a waste of time. Add .com to your business name and venture capitalists would hand you millions. What a screwed up time. I miss it.

RE: Gain or Loss on Sold Property?
Token User @ 8/15/2002 8:48:35 PM #
Related Stories (Ed?)

June 12, 2002:
June 16, 2000:

The June 16, 2000 article outlines the purchase from 3Com a parcel of land valued at $216M. After all fees are paid, etc., they wil lose out, but not as big as some are predicting, so this will only be a minor blip on their balance sheet.


RE: Gain or Loss on Sold Property?
I.M. Anonymous @ 8/15/2002 9:05:03 PM #
Thanks for the links.

>"This is by far the most expensive piece of property that's ever sold in North San Jose," said Mike Brand, a real estate agent with Cornish & Carey Commercial.

WOW - what a difference a couple of years makes...

RE: Gain or Loss on Sold Property?
I.M. Anonymous @ 8/15/2002 11:30:36 PM #
I thought they lost big money on this deal.

Remember they used to have 1.3B after IPO?
Where does it go? Palm doesn't lose that much
money by making these cheap Palms.

suddenly, there was rumors that they would run out
of money. And then a secret investor put in
$50millions. Big money to save the money.
A company that had over a Billion dollars just
a short while ago.
What a company!



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