SAN FRANCISCO-Computer giant Salesforce.com continues to up its San Francisco square footage. Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that the company has just signed 230,000 square feet at One Rincon here.
The deal comes only a few weeks after the company revealed that it will lease the entirety of a 450,000-square-foot high rise that Kilroy has planned at 350 Mission St. The company also revealed that it would expand its presence in 50 Fremont by another 100,000 square feet.
Paul Hastings, a global law firm, represented Salesforce.com in the One Rincon deal. Real Estate partner Steve Berkman led the Paul Hastings team on all three transactions, which also included associate Michael Kovaleski.
According to a recent market report from Marcus & Millichap, expansion in the tech industry will intensify space demand across San Francisco, providing owners with the leverage to raise rents at the nation’s fastest clip. “The surge in demand initially took hold in the South of Market tech hubs where Twitter’s 212,000-square-foot lease is slated to commence by midyear,” says the report. “This upswing in leasing velocity also materialized in the peninsula, highlighted by Facebook’s move into 1 million square feet of space in Menlo Park.”
As the tech sector expands, says the firm, “demand across the peninsula will steadily rise due to a dwindling supply of large blocks of space in the city.”
Eric Shelby and Julie Hoffman of Allen Matkins represented Hudson Pacific.
Shelby tells GlobeSt.com that “the main challenge was the schedule, with a directive from salesforce on the schedule that meant we had only about three weeks to finalize the lease, including the Thanksgiving and Christmas holidays.” He notes that the Salesforce and Hudson Pacific teams each worked diligently and made practical compromises in order to achieve that goal, including drafting provisions that recognized salesforce’s status as the tenant of practically the entire building, balanced against the fact that Rincon Center is really an integrated two building project, and that Hudson accordingly needed the ability to continue to operate the project in a manner that benefited the remaining tenants of the project.”