A PayPal subsidiary is closing its office in San Francisco, as more employees since the pandemic engage in remote work.
Zoom, a subsidiary of the San Jose-based e-commerce firm, will move out of the nearly 80,000-square-foot space it leases at 425 Market St. in the Financial District by June 3, San Francisco Business Times reported.
The payment remittance provider acquired by PayPal in 2015 has several hundred employees who will work remotely, but can choose to work from PayPal’s San Jose headquarters, which remains open.
PayPal “remains fully committed to the Bay Area and to California” and would continue to grow its business and workforce there, a spokesperson said in an emailed statement to the newspaper.
“The pandemic, in particular, has taught us there are many ways in which we can work effectively while providing our employees with flexibility,” the spokesperson said.
PayPal did not respond to more questions from the newspaper about its decision to move out of Market Street, nor did it say whether it would seek to sublease the space for the remaining term.
In late 2020, PayPal closed another office in San Francisco – subleasing 101,000-square-foot of office space at 123 Townsend St., a six-story brick building that predates the 1906 earthquake a few blocks from Oracle Park.
Xoom inked a deal for a 10-year lease of roughly 80,000 square feet on three floors of the 38-story tower at 425 Market St. in the fourth quarter of 2013, according to media reports at the time.The 945,000-square-foot building is owned by New York-based MetLife, public records show, which declined to comment on Xoom’s exit.
Other tenants include MetroMile, a startup offering pay-per-mile car insurance, law firms Morrison & Foerster and Hanson Bridgett, and IBM. Sephora plans to move its offices to a sublease at 350 Mission St. next year.
The city’s core business district, which includes the Financial District, had a total office vacancy rate of 19.2 percent in the first quarter, according to data from JLL.
[San Francisco Business Times] – Dana Bartholomew
Read more
Residential
San Francisco
‘PayPal Mafia’ vet trims $1M on Glen Park mansion ask
Residential
South Florida
PayPal co-founder Peter Thiel revealed as buyer of Miami Beach mansions