One of the companies that has helped transform the San Francisco tech scene and ushered in a massive rejuvenation of the Market Street corridor has just renewed a lease on three of the five floors at the 1355 Market Street building, also known as Market Square. According to sources who track the leasing activity in San Francisco, Twitter will be renewing its lease on floors 7, 8 and 9, which is approximately 215,000 square feet. Floors 2 and 5 will not be renewed and will be available.
Floor two is a smaller space that includes a gym, while floor 5 is a full floor.
Twitter’s presence in the building also covers a second tranche of leases on floors 4, 10 and 11. These floors will be up for renewal in a few years’ time.
Christina Clark is one of the parties working on the deal. She is part of the San Francisco team of Cresa, and she declined to comment on any details regarding the transaction when contacted for this story.
The Market Square office consists of two buildings, the 1355 Market Street building and the 1 Tenth Street building just behind it. The two buildings span an entire block of Market Street in the city’s Mid-Market area and make up 1,264,182 square feet of Class A creative office space. 1355 Market is an Art Deco icon built in 1937, which has been rebranded as Market Square, although it is more popularly known as the Twitter Building.
The two buildings were purchased by San Francisco-based Shorenstein in March of 2011, just as the Great Recession was waning, for $120 million. 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.
In late 2016, Nerdwallet took 120,000 square feet of the roughly 180,000 square feet Twitter had put up for subleasing earlier that year. Nerdwallet had been shopping for space for some time and finally took 79,000 square feet on the seventh floor of the 1355 Market Street building and three 35,000 square foot floors in the 1 Tenth Street building.
According to sources, Nerdwallet is now subleasing one of the floors in 1 Tenth Street building for the duration of the lease, signaling that it will not need all the space that it once counted on utilizing. That sublease is led by the San Francisco office of JLL.