By Jon Peterson
Slack Technologies has signed a lease agreement to occupy in the future 230,000 square feet of the 240,000 square feet of the office space available in the building located at 500 Howard Street in San Francisco, according to sources familiar with the transaction.
The owner of the building is Chicago-based Heitman. They were represented in the lease transaction by the CBRE office in San Francisco. Listing agents were Mark Geisreiter and Ken Churich, both senior vice presidents with the firm. Both Heitman and CBRE declined to comment when contacted for this story.
Slack was represented by the San Francisco office of Colliers International. Colliers did not respond to a request for comment by the time of this publishing.
It was stated in the offering document for this leasing opportunity that the space available could be ready for move-in by April of 2018. The space will cover floors two through 10 of the building. The first floor has been reserved for retail space and is currently occupied. The proper is LEED-Gold certified and has an Energy Star rating of 100, placing it in the top 1 percent of comparable buildings nationwide.
The leases that was signed by Slack will represent a significant expansion for the tenant in San Francisco. The business messaging app company currently has space in several buildings in San Francisco and includes space at 155 5th Street on the 6th floor. The company will be merging all of its space into one location at 500 Howard. Slack currently has 700 employees.
The space in 500 Howard is currently occupied by Gymboree. It will be moving its space to 701 Stevenson on a sublease, according to sources familiar with the company’s operations.
The building features a number of modern amenities, including two outdoor decks, a rooftop terrace, secure bike locks, on-site valet parking and locker rooms with shower facilities.
Heitman has been the owner of 500 Howard since June of 2012. The real estate manager had acquired the property at that time for $184.5 million, according to public documents. The building is right next to the Trasbay Transit Center, which is expected to open later this year. That will give the new tenants access to 11 public transit options, a 5.4-acre city park located in the proximity of 160,000 square feet of retail space.