Palo Alto Networks hopes property deal bolsters South Bay HQ expansion

SANTA CLARA — Palo Alto Networks says it hopes its purchase of an office development site in the South Bay will help the tech company expand its headquarters hub in the future.

The cybersecurity firm recently bought a Santa Clara property across the street from the company’s headquarters hub. The just-bought site has been approved for the development of a large office complex.

“Palo Alto Networks has acquired this property to support future growth at our corporate headquarters in Santa Clara,” a spokesperson for the company stated in an email comment.

The tech giant paid $90 million for a 14.5-acre site at 3625 Peterson Way, according to documents filed on Dec. 11 with the Santa Clara County Recorder’s Office.

The site is fully entitled for a large office development where thousands could work. BXP, a large real estate firm, had gained city approval for the project but never broke ground on it in the face of a sour office market in the Bay Area.

Palo Alto Networks, however, has begun to craft a fresh vision for the just-bought property.

“We are currently in the early stages of exploring potential uses for the site and do not have a defined timeline or design plans at this time,” the Palo Alto Networks spokesperson said.

Palo Alto Networks used an affiliate to buy property through an all-cash deal, county real estate files show. The tech company appears to have acquired the site at a favorable price. The site’s assessed value in January 2025 was $89.1 million.

The cybersecurity company’s headquarters are at 3000 Tannery Way, which is adjacent to the site the company has just bought.

The previously approved plans for the Peterson Way site envisioned an office complex that could accommodate roughly 2,700 to 3,400 workers if the hypothetical buildings were fully occupied.

Palo Alto Networks stated that its new vision for the empty land would bolster the company’s future.

“As the global cybersecurity leader, we are constantly looking for ways to enhance our innovation for employees and customers,” the spokesperson said.