By Meghan Hall
After much anticipation, Uber has released its IPO filing, and the prospectus has revealed interesting details about the company’s plans for expansion throughout San Francisco over the course of the next 20 years. According to the documents, Uber is planning on spending $1.943 billion over the next two decades on leases in five buildings throughout the city: Mission Bay 1, 2, 3 and 4, and Pier 70.
Uber’s plans for Mission Bay 1 and 2 have been publicly known since 2014, when the company announced a joint venture with Alexandria Real Estate Equities, Inc., a $9.3 billion real estate investment trust, to acquire and develop the parcels. Located at 1455 and 1515 Third St., the development consists of two towers totaling 423,000 rentable square feet. Originally, Uber had acquired 49 percent interest in the joint venture, but in 2016 it agreed with Alexandria to dissolve the venture and terminate Uber’s commitment to the lease of the buildings. Alexandria paid Uber $11 million and deferred the remaining $57 million. The transaction, according to public filings, resulted in Uber obtaining the rights and title to the buildings, and it will maintain 100 percent ownership of the Mission Bay 1 and 2 buildings. Alexandria has maintained ownership of the land, and Uber has secured two 75-year land lease deals, which total $175 million and run through February 2032.
In 2015, Uber entered into yet another arrangement with Alexandria and the Golden State Warriors to develop Mission Bay 3 and 4. Uber paid $136 million for its 45 percent stake in the development; the Warriors own 45 percent and Alexandria 10 percent of the entity. In March of 2018, Uber entered into two 20-year lease agreements that total $1 billion over the 20-year period. The agreements also include one 14-year extension. The two buildings will be completed in 2020 and total 584,000 square feet. The buildings are adjacent to the nearly-completed Warriors Chase Center, and construction of the site is expected for the end of summer 2019.
“The arrangement also provided for the terms of the lease agreements with the real estate entity, which were executed in March 2018, for the use of the two office buildings,” the prospectus states. “These buildings together with the buildings of Mission Bay 1 & 2 are expected to be the Company’s future headquarters.”
The remaining $943 million in future minimum payments will be directed toward Mission Bay 1 and 2, as well as a fifth lease at Pier 70. In March 2017, Uber entered into an agreement to lease 130,000 square feet of office space which is currently undergoing renovation.
The agreements show Uber’s rapid expansion in San Francisco. According to the company’s filings, as of December 2018, Uber had leased 7.7 million square feet of office space around the world, including 2.2 million square feet for its corporate headquarters in San Francisco.
“We believe our facilities are adequate and suitable for our current needs and that should it be needed, suitable additional or alternative space will be available to accommodate our operations,” state the filings about the company’s plans for future growth.