Pinterest signed a deal to take over the entirety of a Silicon Valley office building as the company transforms its platform from a virtual pinboard into a place where users can shop using artificial intelligence-powered assistants.
The social media giant finalized a long-term commitment to relocate one of its largest outposts to Sunnyvale, California, according to people with knowledge of the roughly 125,000-square-foot lease. The move to 285 Sobrante Way will more than double the San Francisco-based company's Silicon Valley space once it leaves its 60,000-square-foot space at 395 Page Mill Road in nearby Palo Alto, the timeline for which is not immediately clear.
The Sunnyvale agreement is the latest in a string of investments Pinterest has made over the past couple of years to rebuild its physical office presence after downsizing in the early years of the pandemic, emblematic of the demand generated by companies scrambling to stay at the forefront of the artificial intelligence race.
Pinterest's expansion is also a standout after the company this year unveiled plans to cut up to 15% of its workforce in 2026 and reduce its real estate to support “transformation initiatives” that reallocate resources to adopting AI-focused “roles and teams," the company reported in Securities and Exchange Commission filings. A company spokesperson previously said those changes are being made "to further deliver on our AI-forward strategy."
The company did not respond to CoStar News' requests for comment about its Sunnyvale move.
AI reset
The relocation plans are also an about-face after Pinterest rushed to dump large swaths of space from its corporate real estate portfolio in the early years of the pandemic.
The digital pinboard company paid $125 million to exit its more than 148,000-square-foot lease at 505 Brannan St. in downtown San Francisco several years ago, one of many decisions it made to reduce its corporate real estate footprint, choosing not to renew leases for some office locations while subleasing or terminating deals for others in response to a more flexible work policy that often meant fewer employees commuting to physical hubs.
It also closed an office at 149 Bluxome St., a roughly 19,300-square-foot building near its downtown San Francisco headquarters at 651 Brannan St. The company also decided against renewing space it leased at 410 Townsend St. Pinterest did, however, renew and expand its headquarters lease to occupy about 119,225 square feet through 2029.
Yet as with other tech companies across the country, the AI boom and emphasis on in-person work have collided to generate some of the largest post-pandemic deals to date. That demand has helped prop up battered office markets along the West Coast — especially throughout the San Francisco Bay Area — and has solidified the industry's standing as one of the most powerful sources of demand for the national office market's recovery.
Over the past year alone, Pinterest has inked deals to more than double its Manhattan office and roughly triple its London presence. The company recently moved into a 21,000-square-foot office on the top floor of the Synapse Building in Culver City, near Los Angeles, marking its first significant expansion in the LA area.
Pinterest had more than 500,000 square feet of office space around the world as of the end of 2024, according to its annual report.
Under the leadership of CEO Bill Ready, who took the helm in 2022, the 16-year-old firm has undertaken a strategy of investing in visual search technology and, of course, AI in an effort to win over more young Gen Z users.
Silicon Valley's rebound
Silicon Valley’s office market has been regaining steam, thanks largely to companies operating in or adjacent to the artificial intelligence sector.
A flurry of deals among a spectrum of established companies and fast-growing startups has resulted in the global tech capital reporting its highest quarterly leasing volume since 2022.
The region's vacancy rate remains elevated at about 15%, according to CoStar data, though the picture varies greatly across submarkets.
Sunnyvale in particular remains one of Silicon Valley's most dynamic office submarkets, characterized by its concentration of major tech tenants and a steady pipeline of new development. As of the first quarter of 2026, the market is showing early signs of stabilization, as newly delivered projects lease up.
Leasing activity surged in 2025 and continues into the current quarter, giving Sunnyvale its strongest annual leasing total since 2015. This momentum is driven largely by artificial intelligence and cloud infrastructure firms seeking large, high-quality blocks of space.
Recent deals underscore this trend: Software giant Databricks finalized a lease deal for more than 152,700 square feet at CityLine in Sunnyvale, boosting its presence at the development to more than 455,000 square feet. That followed a big lease by cybersecurity firm CrowdStrike, with about 150,000 square feet in the same development.