Schwab's 375,000 SF at One Montgomery On Market

SAN FRANCISCO-Charles Schwab & Co. has placed 375,000 square feet of Downtown office space on the sublease market as it continues to reduce expenses to help offset a drop in revenues. Company spokeswoman Sarah Bulgatz tells GlobeSt.com that Cornish & Carey has been tapped to find a sublease tenant for 375,000 square feet in One Montgomery.

The leasehold is one of three totaling more than one million square feet that the locally headquartered financial services firm has in Downtown San Francisco. The operations at One Montgomery are being consolidated into 215 Fremont St. and 211 Main St., where the company leases 373,000 square feet and 371,000 square feet, respectively, Bulgatz says.

Charles Schwab has 13,000 workers total and approximately 3,000 in San Francisco. The remaining term on the sublease and an asking rate were not available. Bulgatz did not have immediate access to that information and the brokers involved could not be reached over the weekend for comment.

The company began shedding workers a couple of months ago as part of a cost reduction effort. Bulgatz says Schwab also is looking to sublease its remaining space in Pleasanton, CA, which consists of approximately 55,000 square feet at Pleasanton Corporate Commons. CM Realty is the broker for that space.

“We believe we must proceed as if the economic environment will not improve for some time,” CFO Joe Martinetto stated in the company’s fourth quarter report. “Accordingly, to help support our priorities while offsetting at least some of the likely revenue pressure, we are proceeding with our previously announced effort to reduce expenses significantly.”