Salesforce.com, Inc., an app and cloud platform company planning a major expansion in Mission Bay, is also making waves in the Financial District with the largest long-term lease in The City in at least a decade.
On Thursday, Salesforce.com signed a $339 million, 18-year lease with the Teachers Insurance and Annuity Association for 400,000 square feet at 50 Fremont St. The space is intended to supplement a 14-acre campus the company is planning for Mission Bay.
“We have always known there was going to be a gap between the space we were building in Mission Bay and what we would need based on our growth projection,” said Bruce Francis, chief messaging officer for Salesforce.com. “We always knew another large lease was going to be part of the picture.”
About 2,000 employees will have offices at 50 Fremont and are expected to move in this summer, Francis said.
In a statement Friday, Mayor Ed Lee applauded the lease agreement.
“Salesforce.com’s decision to continue their expansion in San Francisco is positive proof that our City and its workforce are perfect for growing technology and innovation companies,” Lee said in the statement.
The lease is significant for The City, as any large scale – and long term – commitment to a location boosts confidence in the market, according to Colin Yasukochi, a research director for Jones Lang LaSalle.
“Anytime you can get a company to commit to leasing that large of a space for the expansion of their business is a good thing for The City,” Yasukochi said. “It creates opportunities, potentially, for new development down the road.”
Salesforce.com is also moving forward with a 14-acre campus in Mission Bay, with construction expected to begin in 2013, Francis said.
Company representatives are expected to present an update of the project to the San Francisco Planning Commission on Thursday.