Trio of Tech Companies Take Up Twitter’s Market Street Sublease Space in San Francisco

Market Street, Market Square, San Francisco, Twitter, Cresa, Twitter Building, Shorenstein, J.P. Morgan, J.P. Morgan Strategic Property Fund, Nerdwallet, JLL

A portion of Twitter’s fabled office space at the Market Square headquarters in San Francisco has found some new tenants. As The Registry was the first to report on October 10, NerdWallet is one of the new tenants, and the financial services recommendation and advice site is taking 104,850 square feet, or three floors at the 1 Tenth Street building. Nextdoor, a private social network for neighborhoods, and Thumbtack, a professional service recommendation and matching service, are the two other tenants going into the space at the 1355 Market Street building, according to sources familiar with the details of the leases.

The Market Square office consists of two buildings, the 1355 Market Street building and the 1 Tenth Street building just behind it. Roughly 79,000 square feet of space was available in the 1355 Market Street building on the seventh floor, while the 1 Tenth location has three floors of approximately 35,000 square feet available on each floor.

The space was marketed by the San Francisco office of Cresa. Christina Clark, Craig Zodikoff, Jamie Saunders and Erik Carlson worked on the team marketing the location. They were not available for comment or confirmation of the lessee selection process.

Market Square and 1 Tenth span an entire block of Market Street in the city’s Mid-Market area. The renovations by Shorenstein transformed two former retail warehouses into 1,264,182 square feet of Class A creative office space. 1355 Market, an Art Deco icon built in 1937, has been rebranded as Market Square, but is more popularly known as the Twitter Building.

In August of 2015, Shorenstein recapitalized the buildings for around $900 per square foot or $900 million with J.P. Morgan, retaining a 2 percent interest in the building. J.P. Morgan funded the transaction with two capital sources. 49 percent of the deal was taken by the real estate manager’s commingled fund, the J.P. Morgan Strategic Property Fund. The other 49 percent was taken by an Asian group that the real estate manager represents.

The two buildings were purchased by Shorenstein in March of 2011 for $120 million, according to public documents.

NerdWallet has been shopping for space for some time, according to a number of reports. In 2014, the financial services review company signed a nearly 45,000 square foot lease at 901 Market Street. According to its representatives, the firm now employs nearly 400 workers. Crunchbase reports that the company has raised $102 million in two equity and one debt round. $33 million in debt financing was provided by Silicon Valley Bank in May of 2015. In June of 2016, NerdWallet acquired aboutLife, a San Francisco-based company that provides advice on retirement questions.

West Coast Commercial Real Estate News