Google to lease for­mer Sales­force head­quar­ters.

Com­pany to lease for­mer Sales­force head­quar­ters in Fi­nan­cial Dis­trict

San Francisco Chronicle Late Edition - - FRONT PAGE - By Roland Li

Google will ex­pand its San Fran­cisco of­fices in one of the city’s largest deals of the year, un­der­scor­ing tech’s seem­ingly end­less ap­petite for ex­pan­sion.

The com­pany said it has leased 300,000 square feet — room for more than 1,500 em­ploy­ees — at the Land­mark at One Mar­ket build­ing, which was for­merly the head­quar­ters of Sales­force.

Sales­force for­mally changed its head­quar­ters to Sales­force Tower on Nov. 1, ac­cord­ing to cor­po­rate fil­ings.

The deal raises Google’s of­fice space in San Fran­cisco by 30 per­cent to 1.3 mil­lion square feet, ac­cord­ing to data from bro­ker­age Cush­man & Wake­field. Google is the third-largest tech ten­ant in San Fran­cisco, be­hind only Sales­force and Uber, ac­cord­ing to the data. Yet San Fran­cisco is only about 5 per­cent of the Moun­tain View com­pany’s en­tire Bay Area hold­ings, which to­tal 20 mil­lion square feet, or the equiv­a­lent of 14 Sales­force Tow­ers.

Big tech deals pushed San Fran­cisco’s of­fice mar­ket to record-high rents this year. In the past 12 months, Google, Face­book and Ama­zon all have signed new leases or ex­panded ex­ist­ing of­fices in the south­ern

part of the Fi­nan­cial Dis­trict, which in­cludes the area around the new Trans­bay tran­sit cen­ter named af­ter Sales­force. Younger, well-funded tech com­pa­nies such as DoorDash, Twilio and SoFi have also ex­panded by mil­lions of square feet in the city this year. The 1916 Land­mark at One Mar­ket build­ing was pre­vi­ously the head­quar­ters of South­ern Pa­cific Rail­road. It was later con­nected to two tow­ers on Spear and Steuart streets, build­ings where Google is al­ready a ten­ant.

The com­pany’s other San Fran­cisco lo­ca­tions in­clude 345 Spear St., 121 Spear St., 2 Har­ri­son St. and 188 The Em­bar­cadero, ac­cord­ing to Cush­man & Wake­field.

Amer­i­can Realty Ad­vi­sors owns the Land­mark. The firm did not re­spond to re­quests for com­ment.

Google is grow­ing around the world. The com­pany is re­port­edly in talks to oc­cupy 1.3 mil­lion square feet in Man­hat­tan, ac­cord­ing to the New York Post. The com­pany also ex­panded in Chicago and signed a small deal in Tel Aviv.

In the Bay Area, Google has ma­jor plans for new of­fices in Moun­tain View’s North Bayshore dis­trict and in San Jose near Diri­don Sta­tion.

At the same time that they ex­pand lo­cally, Bay Area tech gi­ants and star­tups have also been grow­ing out of state as they seek dif­fer­ent ta­lent pools and cheaper mar­kets.

Paul Chinn / The Chron­i­cle

Google has leased the Land­mark at One Mar­ket, left, in San Fran­cisco, now that Sales­force has moved into its new tower, right.

Liz Hafalia / The Chron­i­cle

Liz Hafalia / The Chron­i­cle

Google has leased 300,000 square feet in S.F.’s Land­mark at One Mar­ket build­ing with room for more than 1,500 em­ploy­ees.

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