Secures Rights To 79,277 SF in Boston Properties' New Office Tower Under Construction at 535 Mission
Trulia, Inc. became the latest tech firm to stake a claim on San Francisco office space, securing 79,277 square feet at 535 Mission St., the 27-story office tower Boston Properties is building just a block from the massive Transbay Center project in downtown San Francisco.
The new 307,235-square-foot office building is scheduled for completion this fall. Trulia plans to occupy its new headquarters space in phases. It will initially move into 52,595 square feet of office space on the lease commencement date and then take an additional 26,682 square feet on October 1, 2015. The firm also has options to lease up to 40,000 square feet of additional office space under the lease.
Brokers from CBRE negotiated both sides of the latest tech firm lease. John Cecconi, Angus Scott and Amanda Emmerson, represent the building on behalf of Boston Properties. Timothy Kazul and and Lucas Ogelsby represented Trulia on the tenant side. Cecconi and Scott both were former principals with The CAC Group which CBRE acquired late last year.
At the same time the residential real estate information firm was negotiating its new headquarters lease, it also announced plans to blanket television, radio, the Web, and mobile devices with a $45 million national ad campaign, as it seeks to build awareness of its service and catch up with industry leader Zillow in a battle for mobile browsing house-shoppers.
According to Bloomberg Businessweek, Trulia's advertising outlay represents almost one-third of its annual revenue. The company hasn’t turned a profit since its September 2012 IPO.
But according to industry analysts, it's all about the eyeballs. The bulk of Trulia's revenue comes from real estate agents who advertise their listings on Trulia's website looking to connect with potential buyers and sellers. The more house hunters Trulia can attract, the more advertising it can sell.
Trulia joins a long list of tech firms that have staked out office space in San Francisco. Other major recent leasing activity by tech firms include:
- Dropbox, the fast-growing cloud storage and data-syncing company, inked a 12-year lease to take all 182,000 square feet planned in a new building Kilroy Realty Corp. is building at 333 Brannan St. in San Francisco's South of Market submarket. The tech company also signed a lease for the new office building at 345 Brannan St. in San Francisco.
- LinkedIn signed for another 39,259 square feet in One Montgomery Tower at 1 Montgomery St. in San Francisco. With the new lease deal, the tech firm expands to occupy a total of 134,539 square feet.
- Practice Fusion, a free web-based electronic health record company founded in 2005, signed a lease for 101,000 square feet in the office building at 650 Townsend St. in San Francisco.
- Twitter, an online social networking and microblogging service, signed a lease for about 313,206 square feet in the office building at 1 Tenth St. in San Francisco.
- Demandforce, a division of Intuit Inc., signed a lease to occupy 100 percent of the office space at 22 4th St. in San Francisco.
- Neustar, a provider of real-time information and analysis to the Internet, telecommunications, and entertainment and marketing industries throughout the world, signed a lease for 140,000 square feet in the office building at 505 Howard St. in San Francisco.
- Prism Skylabs, a tech firm involved in visually understanding and optimizing offline commerce, inked a lease for the entire top floor of the eight-story, 142,902-square-foot office building at 799 Market St. in San Francisco.
- Fitbit Inc., maker of the Fitbit Tracker, a wireless device that tracks users exercise, sleep, and personal metrics, signed a lease for 56,349 square feet in the office building at 405 Howard St. in San Francisco.
- Zendesk, a software development company that offers customer service support, signed a lease to occupy the entire office building at 1019 Market St. in San Francisco.
- AppDynamics, an application performance management solution for apps, signed a lease for 41,718 square feet in the office building at 303 2nd St. in San Francisco.
- Akamai Technologies, a leading cloud platform for media and content delivery, signed a long-term lease for 28,859 square feet in the office building at 799 Market Street in San Francisco.
- And Uber Technologies, the venture-funded San Francisco-based technology company behind the popular on-demand driving service available for hire by passengers using their mobile devices, agreed to lease the entire fourth floor at Hudson Pacific Properties' 1455 Market Street in downtown San Francisco.