The 26-story building is located in the “South of Market” neighborhood which has enjoyed a renaissance of sorts along with the nearby Mission District and other neighborhoods that were largely underdeveloped until the dot-com boom of the 90’s. The tech boom that came out of that is responsible for the continued development of these areas.
The migration continues
LinkedIn Corp (NYSE:LNKD) did not disclose the financial terms of the deal but did state that the building at 222 Second Street could ultimately house up to 2,500 LinkedIn employees. It’s just another example of Silicon Valley’s northern migration as companies compete for employees who would prefer to live in San Francisco without a long commute.
“We’re a fast-growing company, and having this space gives us the room to grow in San Francisco and have greater access to the talent that is in the northern part of the Silicon Valley,” said LinkedIn’s Hani Durzy, director of corporate communications.
Presently, LinkedIn Corp (NYSE:LNKD) leases 135,000 square feet in the One Montgomery Tower and will augment this with 87,000 square feet on Howard Street as it awaits the new tower’s opening. With over 5,000 employees worldwide and 2,000 of them in Mountain View, CA the company has stated that its headquarters will remain in Silicon Valley.
The deal is the 4th-largest in terms of square footage in San Francisco history according to Colin Yasukochi, director of research and analysis for commercial real estate brokerage CBRE.
LinkedIn is not alone
The biggest deal belongs to salesforce.com, inc. (NYSE:CRM), which agreed to lease 715,000 square feet in a new 61-story skyscraper that is being constructed near the old Transbay Terminal. The building will open with the name Salesforce Tower, which will be the city’s largest, and allowed Salesforce to sell its current headquarters in Mission Bay. That space will ultimately make way for the Golden State Warriors’ new arena.
Earlier this month, Microsoft Corporation (NASDAQ:MSFT) leased 50,000 feet in the iconic structure that was once known as the Bank of America Corp (NYSE:BAC) building and was San Francisco’s tallest building.