2017 Shaping Up To Be The Year Of The Large Tech Lease In San Francisco
Tech companies are expanding their footprints in San Francisco in big ways this year. Amazon, Google and Airbnb have all signed leases over 100K SF. Even bigger deals are in the works. Facebook is said to be eyeing about 400K SF at 181 Fremont, according to the San Francisco Business Times. This would be the biggest lease of the year, but those closest to the deal have kept mum on the details.
Check out the largest leases and renewals signed so far this year in San Francisco.
Airbnb
Location: 650 Townsend
Size of Lease: 287K SF
Lease Term: Nine Years
Landlord/Owner: Zynga
Broker: Cushman & Wakefield (for landlord)
Airbnb’s latest lease at Zynga’s building in Showplace Square brings its total footprint in the South of Market subdistrict to about 600K SF. The short-term rental company began occupying its newest office at 999 Brannan St. earlier this year. Airbnb will become the anchor tenant at the Zynga-owned building. Zynga tried to sell its 670K SF headquarters building last year, but ended up becoming a landlord instead. Airbnb also leases space at 888 Brannan St. and 99 Rhode Island St.
Amazon
Location: 525 Market St.
Size of Lease: 180K SF
Landlord/Owner: New York State Teachers’ Retirement System
Broker/Leasing Agent: Cushman & Wakefield (for landlord)
Amazon is rapidly expanding its presence throughout the Bay Area this year, signing a 214K SF lease in East Palo Alto at the Sobrato Organization-owned University Square building and 350K SF at Jay Paul Co.’s Moffett Towers II in Sunnyvale. Additionally, Amazon’s Lab126 is planning to move its offices to downtown San Jose. This year’s deals add over 750K SF to Amazon’s Bay Area footprint. It also has an office at 188 Spear St. and 475 Sansome St.
Location: Rincon Center II on Spear Street
Size of Lease: 166K SF
Lease Term: 10 years
Landlord/Owner: Hudson Pacific Properties
Broker/Leasing Agent: CBRE (for landlord)
Google’s lease at Rincon Center II will begin in March and helps the landlord recover from two expiring leases, which include 132K SF from AIG and 22K SF from Dentons. Google is Hudson Pacific’s fifth-largest tenant. Google occupies about 724K SF in San Francisco.
AppDynamics
Size of Lease: 150K SF
Leasing Term: Five and a half years
Location: 303 Second St.
Landlord/Owner: Kilroy Realty Corp.
Broker/Leasing Agent: JLL (for landlord)
The Cisco-owned company nearly doubled its space in downtown San Francisco with its lease renewal. It added 67K SF, bringing its total lease to about 150K SF.
Salesforce
Location: 415 Mission St.
Size of Lease: 149K SF
Landlord/Owner: Boston Properties/Hines
Broker/Leasing Agent: CBRE (for landlord)
Salesforce expanded its lease at Salesforce Tower by 149K SF during the quarter, according to Cresa. The deal was Boston Properties’ largest deal so far this year. The additional lease brings Salesforce's total presence in the tower to 881K SF. The tower is about 82% leased. Salesforce will start occupancy in early 2018.
Otto
Location: Historic Pier 70
Size of Lease: 130K SF
Landlord/Owner: Orton Development
Broker/Leasing Agent: Cushman & Wakefield (for landlord)
Otto’s lease at Historic Pier 70 brought the project up to 85% leased. Other leases at the site include 60K SF for Restoration Hardware, 40K SF for Tea Collection and 22K SF for Obscura Digital.
Adobe
Location: 100 Hooper
Size of Lease: 107K SF
Lease Term: 13 years
Landlord/Owner: Kilroy Realty Corp.
Broker/Leasing Agent: Colliers International (for landlord)
Adobe previously leased 207K SF, the largest lease for new construction in 2016, and then expanded its lease to take the entire office space by adding 107K SF at 100 Hooper St. in February. Adobe is expected to begin occupancy during the second half of 2018.
Accenture
Size of Lease: 101K SF
Location: 415 Mission St.
Landlord: Boston Properties/Hines
Broker/Leasing Agent: CBRE (for landlord)
Accenture is leasing four floors at Salesforce Tower with a late 2017 occupancy, according to the San Francisco Business Times. It will join pre-leased tenants CBRE, Salesforce and Bain & Co.
