Quote:
Originally Posted by mhays
If he's announced a lease, sure.
If he's expressing optimism, well, that's his job.
If you hear a developer or leasing agent say tenant interest is high, the proper thought isn't congratulations, but "well played."
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They have a lease, nobody's looking for another tenant and Benioff was talking about redesigning the spaces more of less along the lines of the AirBnB spaces I posted above. The fact that they are planning to do that I take to mean he's planning to stay.
What Salesforce IS doing is drawing back along the lines I previously posted:
Quote:
Salesforce cuts back on S.F. office space, canceling lease at unbuilt Transbay tower
Photo of Roland Li
Roland Li
March 9, 2021
Updated: March 10, 2021 2:38 p.m.
Exclusive Update: Salesforce is listing part of its San Francisco offices at 350 Mission St. for sublease. Go here for the latest information.
Salesforce has canceled its 325,000-square-foot lease at the unbuilt Parcel F tower in San Francisco’s Transbay district after the company adopted a permanent remote work policy.
Developer Hines said at a city hearing Monday that the 61-story project’s “initial lease commitment ... is no longer in hand.”
Salesforce declined to comment. The company said last month that its remote work shift could lead to a reduction and reimagining of its office space, without providing specifics. Under the post-pandemic plan, the majority of its workers would stay home for at least one to three days a week.
Salesforce is San Francisco’s largest private employer with 10,000 local workers and 54,000 global employees. It has agreed to buy Slack, the work communications company, which has offices nearby in the Transbay area . . . .
The project at 542-550 Howard St., one of the last tower sites in the Transbay district, has additional challenges. Chinatown activists oppose the project because of the shadows it would cast on Willie “Woo Woo” Wong Playground in that neighborhood, which has led to city hearing delays.
Hines, Urban Pacific Development and a Goldman Sachs affiliate bought the site for $175 million in 2016, and the project has undergone nearly five years of city reviews. A Board of Supervisors vote is scheduled next week (they approved it after receiving "guarantees" that the project would break ground this year).
Cameron Falconer, a Hines executive, said during Monday’s Board of Supervisors subcommittee hearing that the project has had a “very long road and a number of significant delays that have impacted the project’s economics, budget and viability,” adding “hundreds of millions of dollars” in costs.
Hines is also seeking to pay $47 million in affordable housing fees, rather than building 33 on-site affordable condos, a change that would require city approval. San Francisco has the world’s highest construction costs, which makes building affordable housing in towers a financial challenge. The fees would help finance 192 affordable homes at a nearby site on Howard Street that Hines and its partners own.
At the Monday meeting, Supervisor Aaron Peskin pressed city staffers and Falconer, suggesting that the project be redesigned to prevent it from casting a shadow on the Chinatown park for 15 minutes a day during parts of the year.
He also criticized the affordable housing fee payment schedule, which requires the developer to put up a letter of credit but not hand over the cash until the money is needed for the affordable units.
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https://www.sfchronicle.com/business...e-16013047.php
350 Mission is a much shorter building, also of recent construction, across the street from the tower. Salesforce leases all of it. The fact that they are talking about subleasing only part of it is actually reassuring regarding the tower. If they didn't think they needed all the space in the tower and also some in 350 Mission, they'd probably sublease all of 350 Mission as well as the taller building across Fremont St (third corner of the intersection) which Salesforce owns and pull back completely to the tower.
Anyway, note no mention of the tower in this recent article by SF's premier commercial real estate reporter.