Salesforce.com Inc. (CRM:US) agreed to lease an entire San Francisco building that’s scheduled to break ground next month in what would be the first new office high- rise development in the city since 2008.
The deal comprises about 450,000 square feet at Kilroy Realty Corp.’s planned 350 Mission St. tower in the South of Market neighborhood and is the city’s largest office lease this year, San Francisco Mayor Edwin M. Lee said today in a statement. The building is scheduled to break ground in January, with the company expected to begin occupancy in 2015, the mayor said.
“Salesforce.com’s major expansion downtown proves once again that investor confidence is driving San Francisco’s economic recovery,” Lee said in the statement.
San Francisco-based Salesforce, the largest maker of online customer-management software, is also expanding by 100,000 square feet at nearby 50 Fremont St., where it earlier this year agreed to take 400,000 square feet, according to the statement.
Salesforce’s lease agreement with Kilroy includes 50,000 square feet of “must-take space” that’s subject to the Los Angeles-based real estate investment trust obtaining approval from the city of San Francisco to add three stories to the building, Kilroy said in a separate statement.
The company plans to “grow and add jobs” in the city, said Chief Operating Officer George Hu.
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