SAN FRANCISCO—Pinterest Inc. has terminated its office lease for approximately 490,000 square feet to be constructed at 88 Bluxome St. near its current headquarters campus. Instead, the company plans to continue leasing its current downtown buildings in order to support a more diverse and geographically distributed workforce.

"As we analyze how our workplace will change in a post-COVID world, we are specifically rethinking where future employees could be based," said Todd Morgenfeld, CFO and head of business operations of Pinterest. "A more distributed workforce will give us the opportunity to hire people from a wider range of backgrounds and experiences."

The agreement involved a one-time payment of $89.5 million in third quarter 2020. This will be reflected in Pinterest's financial statements as a GAAP general and administrative expense to be filed with its quarterly report on Form 10-Q for the period ended September 30, 2020. As a result of the termination, Pinterest will no longer be subject to future minimum lease payments of approximately $440 million as disclosed in prior filings.

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Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.