In a second major lease agreement by a tech firm in downtown San Francisco in as many weeks, career-focused social networking service LinkedIn (Nasdaq: LNKD
) agreed to take the entire 26-story office tower Tishman Speyer is building at 222 Second Street.
The 450,209-square-foot, LEED-regitstered office building
is expected to be completed by the end of 2015 and ready for occupancy in early 2016. Tishman Speyer acquired the site in 2006. The building will also include 2,209 square feet of retail space
Jay Sternberg and Phillip Arnautou of Colliers International represented LinkedIn. Allen Palmer handled inhouse representation for Tishman Speyer.
Headquartered in Silicon Valley's Mountain View, LinkedIn has joined the burgeoning tech expansion in San Francisco where it has steadily increased its presence. LinkedIn currently occupied approximately 135,000 square feet at One Montgomery Tower and recently leased 87,000 square feet at 505 Howard Street.
"With this new building, LinkedIn is committed to expanding in San Francisco, giving us even more access to some of the most talented professionals in the world across a variety of functions, including technology, sales, and operations," said LinkedIn Head of Workplace Jim Morgensen in a statement announcing the agreement. "We look forward to San Francisco becoming a larger part of our growing Bay Area presence."
LinkedIn's deal with Tishman Speyer follows the blockbuster move by Salesforce.com (NYSE: CRM
) which signed the largest office lease in San Francisco's history, commiting to lease 714,000 square feet in the 1.4 million-square-foot, 61-story office building at 415 Mission St. that co-developers Boston Properties and Hines are currently building in downtown San Francisco.
Set to rise 1,070 feet above the new Transbay Transit Center and become the tallest building west of Chicago when completed in 2017, the Cesar Pelli-designed structure has been renamed Salesforce Tower after the leading provider of customer relationship-management software that was founded in a San Francisco apartment in 1999.
The competition for new office space
in San Francisco has become a game of musical chairs with tech firms jockeying for space. Cloud storage firm Dropbox by itself accounted for three major leases signed in the first quarter: signing for 180,000 square feet at 333 Brannan St., 110,664 square feet at 185 Berry St., and 118,000 square feet in 345 Brannan St., for a first quarter total of approximately 408,664 square feet.
Other recent tech moves include Twitter, which leased 313,206 square feet in 1 Tenth St., and Trulia Inc., which took 80,000 square feet at 535 Mission St.
LinkedIn operates a professional social network with 300 million members worldwide. It has more than 5,000 employees and is planning to keep its headquarters in Mountain View. The company is also building an office in nearby Sunnyvale, CA.