Hudson Pacific Signs Google to San Fran Office Lease
- Mar 27, 2017
San Francisco—Hudson Pacific Properties Inc. just found a big-name tenant to fill a big gap looming in the roster at Rincon Center II, its 250,000-square-foot office property in San Francisco. The West Coast office, media and entertainment property REIT recently secured a commitment from Google Inc. to occupy 166,460 square feet of space that will soon become available at the six-story tower.
“This deal exemplifies the continued strong demand from top-tier tenants for big blocks of space in the city, as well as our team’s ability to proactively address expirations and capture the mark-to-market on rents to the benefit of our shareholders,” Victor Coleman, chairman & CEO of Hudson Pacific Properties, said in a prepared statement. Hudson Pacific is the largest publicly-traded, institutional owner of office property in Silicon Valley.
Located at 121 Spear St., Rincon Center II is part of the two-building, 580,000-square-foot mixed-use Rincon Center office complex. Originally built in 1940 and redeveloped in 1989, the property also features a total of roughly 94,000 square feet of retail space. Google inked a 10-year lease at Rincon Center II, effectively backfilling space that will be vacated with the expiration of AIG’s 20-year lease of 132,600 square feet at the end of July and law firm Dentons’ 22,000-square-foot lease at the close of December.
“Hudson Pacific Properties is pleased to further expand its relationship with Google and support the growth of its urban campus in downtown San Francisco,” Coleman added. Relationship, indeed. The global tech giant is Hudson Pacific’s largest office tenant in financial terms, accounting for 4 percent, or roughly $19.6 million, of the REIT’s office portfolio annualized base rent, as of December 31, 2016. Google occupies an aggregate 305,700 square feet between Hudson Pacific’s 3400 Hillview property and Foothill Research Center, both of which are in neighboring Palo Alto. Google’s new lease at Rincon Center II will commence in March 2018.