JUNE ISSUE: Tech Companies Absorb San Francisco’s Leasing Market
- Jun 10, 2014
Within one week in April, more than 1.1 million square feet of Class A office space was pre-leased in San Francisco by just two technology firms.
Tech companies such as Salesforce.com and LinkedIn are driving the explosive growth in San Francisco’s office leasing market, where vacancy rates are dropping, rents are increasing and concerns of another dot-com bubble are creeping into conversations.
Salesforce, already San Francisco’s largest technology employer, signed the largest office lease in the city’s history when it agreed to take 30 floors and 714,000 square feet in the 61-story, 1.4 million-square-foot tower at 415 Mission St. Salesforce, which occupied 326,000 square feet at the end of 2009, now has leases signed for 1.8 million square feet, a growth of more than 460 percent, according to a report from CBRE’s Global Research and Consulting group.
LinkedIn announced a week later it was leasing 450,000 square feet—the entire 26-story building Tishman Speyer is constructing at 222 Second St.
Read the full article in the June 2014 issue of CPE. Access is free!