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Transbay Highrise Renamed Salesforce Tower After Tech Firm Signs Largest Office Lease in San Francisco History

Cloud Computing Company Preleases 714,000SF at Former Transbay Tower; 61-Story, 1.4 Million-SF Trophy High-Rise To Deliver in 2017
April 14, 2014
Salesforce.com (NYSE: CRM), the leading provider of customer relationship-management software that was founded in a San Francisco apartment in 1999, has signed the largest office lease in San Francisco's history, commiting to 714,000 square feet in the 1.4 million-square-foot, 61-story office building 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 at 415 Mission St. has been renamed Salesforce Tower. Total development cost is approximately $1.1 billion, including capitalized interest. Salesforce.com will occupy the building's top and bottom floors, as well as 3-30.

"Salesforce Tower represents an incredible milestone in our company’s history - it will be the heart of our global headquarters in San Francisco," said Marc Benioff, chairman and CEO of salesforce.com. "We founded salesforce.com in San Francisco 15 years ago and this expansion of our urban campus represents our commitment to growing in the city."

The new office tower seemingly appeared pre-ordained for the fast-growing tech firm, rising in the middle of where the fast-growing company established its urban campus after calling off plans in 2010 to locate in the city's Mission Bay area. Salesforce.com also has offices at 50 Fremont St. and 350 Mission St. among several other locations in downtown San Francisco.

The company has more than 4,000 employees in the San Francisco Bay Area and more than 13,000 employees worldwide. As San Francisco’s largest tech employer, salesforce.com said it expects to hire more than 1,000 people in the Bay Area this year.

The LEED Platinum pre-certified office building will feature 100% outside air coming into each floor, 10’-0" tall floor-to-ceiling window wall exterior, and column-free interior floor plans allowing for total space planning flexibility. At the top of the property will be a glass and steel crown that is set to transform San Francisco’s skyline.

Lease payments associated with the salesforce.com lease will total approximately $560 million over the 15.5 year lease term, the company reported. It also estimates that triple net operating expenses related to the lease, which will also begin in the first quarter of the company's fiscal year 2018, will be approximately $305 million.

Cushman & Wakefield Vice Chairman Dan Harvey, along with the firm's Tori Hockersmith, Michael Griffiths, John Coons and Anna Jensen, brokered the transaction on behalf of the tenant. John Cecconi of CBRE and JD Lumpkin of Cushman & Wakefield negotiated on behalf of Boston Properties and Hines.

"Salesforce Tower is a cornerstone in the extraordinary trajectory of San Francisco’s most dynamic company and one of the world’s great technology brands," said Harvey. "They have also shown an unsurpassed commitment to remaining in The City throughout their evolution. In the process, salesforce.com has redefined what it means to create a thriving corporate campus in a downtown city center.

"With this lease, San Francisco has cemented its reputation as the global technology center for social, mobile and cloud innovation. The flight to the suburbs has been re-routed," Harvey continued.

News Director Tim Trainor contributed to this report.

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