Microsoft is expanding its presence in Silicon Valley. The company has just signed a lease on a 237,000 sq.-foot space in Moffet Towers, Sunnyvale, at the intersection of Highways 101 and 237. The announcement ends weeks of speculation as to whether Microsoft would take the space. Several of its business units will be moved there from the companies local base in Mountain View. The new space will provide an opportunity for those units to expand.

The Moffett Towers complex consists of seven eight-story buildings, some of them already leased by top technology companies. HP has leased an even larger space to house its most recent acquisitions, ArcLight and Fortify Software. Other new neighbors will include Motorola and Comcast.

Activity at Moffett Towers has been a boon to Sunnyvale’s business real estate market, with new leases there reducing the city’s office vacancy rate by 10 percent. With the success of the current project, developer Jay Paul Co. is planning to launch phase two sometime before the end of the year.

Read More at the Business Journal.