By Meghan Hall
Following closely on the heels of Uber and Zoom, Pinterest has filed to go public, and its prospectus, filed March 22nd with the U.S. Securities and Exchange Commission, reveals that the company has close to $1.2 billion in long-term lease commitment throughout the San Francisco Bay Area and internationally. According to Pinterest’s filings, as of December 2018, the company had approximately $731.1 million in long-term contractual commitments that are non-cancelable. In March 2019, Pasadena, Calif.-based Alexandria Real Estate Equities, Inc. announced that Pinterest signed a lease for 490,000 rentable square feet at 88 Bluxome St. in San Francisco to the tune of $420 million, signaling the company’s commitment to the Bay Area despite its rapid growth.
The lease payments for Bluxome St., states the prospectus, are anticipated to begin in 2022 and carry through until 2033.
“We were drawn to this project specifically because of how open the space will be to our neighbors,” said Charlie Hale, head of public policy and social impact at Pinterest in a press release detailing the lease. “We know how important the Gene Friend Rec Center has been for many of our community partners. That’s why we’re excited this project will provide additional space for the San Francisco Recreation and Park Department. We are thankful to be part of SoMa and continue to identify ways our spaces can reflect our commitment to the neighborhood.”
Pinterest’s lease of the building brings the mixed-use campus’s pre-leasing total to almost 60 percent and, according to Alexandria, is the first major lease signed at a development project created in support of the City of San Francisco’s Central SoMa Plan. The project, a redevelopment of the San Francisco Tennis Club, will feature next-generation technology with active retail space on the ground floor. Outdoor deck space, two swimming pools and a childcare center will all be part of the office campus upon its completion.
Studios Architecture and IwamotoScott Architecture designed the building.
Pinterest’s leases — both in San Francisco and beyond — have original lease periods expiring between 2019 and 2033, and the weighted-average remaining term of the company’s operating leases is about 11.6 years. According to Pinterest’s website, the company has more than a dozen offices around the world in major cities from Berlin to Tokyo to Sydney and Sao Paulo. The company’s headquarters is located in San Francisco and currently all of its facilities are leased.
“We believe that our facilities are sufficient for our existing needs,” states Pinterest in its filing documents.
Pinterest’s filing to go public comes shortly after Uber’s IPO filings were released, indicating that it is set to spend close to $1.9 billion in San Francisco leases over the next 20 years. Together, the two companies’ rapid expansions and thirst for space are part of a greater wave of burgeoning and established technology companies driving the velocity of San Francisco’s office market, and they show few signs of slowing in the future.