Oracle purchases Siebel Systems last year and took on a good deal of space in the San Mateo region that was leased at the  top of the  dot.com era. They closed most of the offices and were paying twice the going rate for the space until they bought out  the  leases for  over 130 million dollars this past week.

So if you are larger company looking for Class A office space in San Mateo, you are in luck. There is a glut hitting the market.

The transactions are the latest effort by Oracle to rid itself of more than 800,000 square feet of office space it took on last October when it agreed to buy Siebel for $5.85 billion. While top-tier Class A office space in the Mid-Peninsula hovers at about $25 to $30 a square foot, Siebel rented much of its space at the height of the dot-com market, leaving Oracle on the hook for astronomical rents for a decade to come.

In the case of 800 and 900 Concar, Siebel was paying $75.12 a square foot for 216,000 square feet, a number that is more than double current Class A rents. Under the old Siebel deal, rents on the building would have jumped to $100 a square foot by the end of the lease in 2015, according to an SEC filing.

Oracle’s $130 million buyout comes as ING Clarion is in the process of selling the 215,000-square-foot complex to Tishman Speyer for about $65 million, or $300 a foot, according to multiple brokerage sources. All told, ING Clarion is poised to reap about $195 million from its investment in the brick-faced San Mateo properties, which the company bought in June of 2005 for $155 million.

Oracle pays $130M to dump lease – San Francisco Business Times:.

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