TIAA-CREF’s Fifty Fremont Gets 400,000-SF Tenant

By Natalie Dolce

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Fifty Fremont is
owned by TIAA-CREF

SAN FRANCISCO-According to a recent 8-K statement, SalesForce.com has committed to 400,000 square feet at Fifty Fremont. The building is a class-A office at 50 Fremont St., owned by TIAA-CREF, here in San Francisco.   

The cost of the lease is approximately $339 million over the 18-year term, including triple net estimated operating expenses, according to the statement. The premises will be delivered, and will expire in phases during the term of the lease, according to the 8-K statement. The first floors will be delivered April 1, 2012, and the last floors will expire on April 30, 2030.

The company has two five-year options to extend the term of the lease, an option to lease additional space in the building, and the option to terminate certain floors of the lease between September 2021 and October 2025, according to the statement.

SalesForce.com also has the “right to sublease, assign or transfer the premises, subject to certain terms and conditions.” Additionally, SalesForce.com has the right to purchase the building between December 1, 2017 and November 30, 2018, and has a one-time right of first offer to purchase the building throughout the term of the lease.

TIAA-CREF senior director of asset management, John Cornuke, tells GlobeSt.com that the company's "investment in high quality office properties is focused on providing our tenants with the best in quality and sustainability at strategic locations while providing long term value to our investors." That vision, Cornuke says, has been validated by this lease. "There is no doubt that this is an exciting time for the emerging Transbay District, and we are certain that the addition of SalesForce.com and its employees to the area will create an even more dynamic and vibrant atmosphere as the district continues to evolve."

As GlobeSt.com reported in August, TIAA-CREF was moving forward with a multi-million dollar renovation of Fifty Fremont and the Plaza at Fifty Fremont. Construction, expected to cost approximately $10 million, is expected to be complete by the first quarter of 2012. At the time, John Cornuke, director of real estate asset management at TIAA-CREF, said that “Fifty Fremont is a trophy asset in a strategic location anchoring San Francisco’s South Financial District. Our renovation plan will focus on refreshing and improving the tower’s arrival experience and public outdoor spaces in a modern context, changes that will enhance the day-to-day experience of our tenants at Fifty Fremont, help create value for clients, and deepen our connection to the local community.”

Categories: West, Office, Leasing, San Francisco