In High-Vacancy SoMa, Pembroke Signs 56K SF In Office Leases
Four tenants have done their part to chip away at the sky-high office vacancy rate in SoMa.
At 140 New Montgomery St., artificial intelligence firm Superset, software developer Calendly, consulting firm Heidrick & Struggles and media firm Bloomberg have inked a total of 56K SF in leases with landlord Pembroke. All of the leases are new deals except Bloomberg’s renewal.
CBRE represented Pembroke but didn't specify the size of each lease. A CBRE spokesperson said the leases range from 8K SF to 26K SF in the 26-story tower.
While the new lease agreements lift the building’s occupancy to 82%, according to CBRE, other building owners in SoMa haven’t been quite as fortunate.
Nearly half of the neighborhood's buildings sat empty through the end of Q1, according to Cushman & Wakefield. SoMa’s vacancy was 48.6% during the first three months of 2024.
“It will take time for the San Francisco office market to rebalance its supply and demand,” CBRE Executive Vice President Bill Cumbelich said in a statement.
140 New Montgomery St. has outperformed other San Francisco office buildings over the past four years, thanks to its location, amenities and ability to attract a highly skilled workforce, Cumbelich said.
Constructed in 1925, the 299K SF 140 New Montgomery St. was the former headquarters of Pacific Telephone and Telegraph.
