Knightscope, Inc. (NASDAQ: KSCP) is a robotics company specializing in autonomous security robots for public safety, using AI-driven technology to help protect lives, property and infrastructure. It is a leading developer of public safety technologies, providing robots to patrol campuses, malls, hospitals, casinos, and government buildings. The Company designs, engineers, manufacturers, deploys and subsequently supports its technologies 24/7/ across the United States.
Tim Vi Tran, CEO of the Ivy Group, a premier commercial real estate brokerage firm in Silicon Valley, holds top commercial Realtor® designations as CCIM & SIOR after more than 25 years in industrial property sales, purchase and leasing services.
Tim advised and brokered this sublease negotiation for Knightscope, and secured a 33,355 sq. ft. space at $2.37/SF NNN, with months of free rent after the tenant had already spent millions in tenant improvements – providing a premium location for a premium technology developer.
Tim helped the Knightscope assess dozens of locations throughout the Bay Area to find the perfect spot. And after months of effort, it actually all came together in Sunnyvale.
The company grew over the years from leasing ¼ of a 13,000 sq ft facility to then taking on ½ of it then ¾ and finally took over the whole facility. It needed a step change in improvements but also Tim cautioned not to over do it – despite some unique opportunities in the marketplace.
“It’s my job as their real estate advisor to look out for them…more than just get a deal done, get bragging rights and get paid a commission. I’ve got to look out for this company, so they can be around for decades to come,” Tim explained.
“We must have looked at 20 or 30 buildings, and there were a few that they really liked, and the one that came down to the end is this 33,355 sq. ft. That’s about a $5 million lease commitment – the base rent, the ‘triple net’ expenses, all the operating expenses, and the annual increases.”
“The other 100,000 sq. ft. building they were initially interested in was bigger, and it was a sublease, and they’d have to commit to eight and a half years. That would have been a $32 million commitment.”
Tim guided the company to assess from the perspective of financial and other commitments – the difference between $5 million and $32 million, time commitment, and the lease rate basis:
Even though the 100,000 sq. ft. building was a good deal, and despite the great quality of the property, there is the difference of $27 million between the eight and a half year sublease and the smaller space with a five year sublease. Tim also compared to other properties on a price per square foot basis – the lease rate basis. “We looked at how much money they have to put into the space, to clean it up, to build it out, to get permits, etc. And it would have been a million, or half million. It would have been 12 months dealing with the city. They needed a space where they could literally move in, do something real quick and be in business, and keep moving forward”, said Tim.
“We looked at so many buildings. Some of them were like, five bucks a square foot. Some of them were two, some of them were three, some of them were even one dollar a square foot.”
“I showed them the dollar per square foot property. It’s unsafe to even get out of the car in the parking lot. They’re going to spend probably a million dollars over 12 months to fix this place up. So you don’t just look at the price per square foot basis. You look at everything, the whole big picture, the parking, what type of landlord you’re dealing with, how much power does it have to run your business, etc.”
“There are so many factors. We compared all these different properties, putting all the pluses and minuses against each other in an easy, summarized matrix, and let the board and the company make their decision, the right decision. With that being said, I also feel like they’re going to outgrow the space in about two years or three years, which is fine – when the time comes, we restart the search to get a second building.” Tim stated.
Even though Knightscope’s sales are expected to grow and the employee headcount is increasing significantly, Tim advised them to rent based on the current needs with maybe 10% to 20% grow expectations, as long as they have the adequate space for their current needs for design, manufacture, and a place where investors can meet at their corporate headquarters.
Tim continued: “We’re trying to do what’s right for them. I go find a space based on their numbers. Because I’ve been following this publicly traded company’s quarterly and annual reports. I have invested in the company, I’m on their investors’ calls, so I had some additional insights to share with them with a lot of context.”
Tim offered Knightscope his thoughts, they listened and took a more prudent and realistic approach. Instead of 100,000 sq. ft., Knightscope decided to be more realistic and subleased a 33,355 sq. ft. property. Tim negotiated really hard for them, and got a solid deal.
“This is what we do with all our clients: walk the client through the process. We helped them structure the sublease for a great deal, which earned their CEO and CFO’s confidence in us. They also needed to do some TI (‘tenant improvement’) work. So we recommended IT guys that can run the wiring cables, and we recommended a contractor to come in and redo some of the walls and floor plans”, Tim continued.
“We are more than just an agent. We actually provided additional services like recommending trusted vendors. They went with both of our recommended contractors as well.”
“We’ve been working with Knightscope for more than 12 years. We started with them when they were just in their infancy. As they grew, they kept coming back to us because of our market knowledge and our trusted advice”, said Tim.
The Ivy Group has extensive experience working with companies in R&D, design, robotics, advanced manufacturing, hardware, software, AI, supply chain logistics and distribution in Silicon Valley, Fremont, and the greater San Francisco Bay Area. The Ivy Group is regarded as one of the best in commercial and industrial real estate sales, purchase and leasing.
“Relationships are everything. We earned our status among the ‘Ivy League’ of commercial real estate brokerages by always going above and beyond for each and every client. That’s our secret source,” concluded Tim Vi Tran, with a beaming smile of genuine fulfillment and satisfaction.
The Ivy Group specializes in commercial sales, leasing, and investment advisory across Fremont, Silicon Valley, and the Greater Bay Area. With over 100 years of combined experience and designations including SIOR and CCIM, The Ivy Group provides strategic guidance for complex transactions in commercial real estate.
When you need to sell, buy, or lease, The Ivy Group is ready to help you reach your goals with more than 100 years of combined experience and expertise. Contact us with your next real estate needs.
All information shared here in this article, and in all blogs, case studies, and courses offered by The Ivy Group are for general education only, not as tax, legal, or investment advice. Please seek professional advice from tax, accounting, legal, and other professionals.
Copyright © 2025 by Tim Vi Tran, SIOR, CCIM. All rights reserved.
