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San Francisco

Uber to shed a third of its SF headquarters in Mission Bay

Rideshare firm wants to sublease an entire 287K sf building it never occupied

Uber's Dara Khosrowshahi, 1725 Third Street (Uber, Getty, President.gov.ua/CC BY 4.0/via Wikimedia Commons)

Uber’s Dara Khosrowshahi, 1725 Third Street (Uber, Getty, President.gov.ua/CC BY 4.0/via Wikimedia Commons)

Uber aims to shed a third of its San Francisco office headquarters in Mission Bay.

The rideshare firm has listed for sublease 286,500 square feet at 1725 Third Street, one of four buildings that makes up its corporate hub, the San Francisco Chronicle reported, citing CoStar News.  An asking price was not disclosed.

The company never moved into the building. It was developed by Pasadena-based Alexandria Real Estate Equities in 2021 and privately marketed for sublease that year, according to the San Francisco Business Times.

Uber now leases more than 1 million square feet for the four Mission Bay properties that serve as its global headquarters, according to CoStar.  

The ride-hailing giant, which started paying $84 per square foot for the offices in 2019, invested  $160 million in the campus build-out, according to CoStar data and an earlier DBRS Morningstar analysis.

San Francisco rents, among the highest in the nation, now average $62 per square foot, according to CoStar figures. 

This month’s public listing comes after Uber listed offices sublease prior to the pandemic at its former headquarters at 1455 Market Street. 

Across the Bay Area, many firms have peeled off offices during the era of remote work, a trend led by tech firms during the pandemic. 

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One out of three offices in Downtown are available for lease or sublease, compared to 4 percent in early 2020.

San Francisco-based Salesforce, the city’s largest private employer, has listed offices for lease at 50 Fremont Street, at its Salesforce Tower at 415 Mission Street and at 350 Mission Street 

Slack, a unit of Salesforce, left its former headquarters at 500 Howard Street and listed offices for sublease at 45 Fremont. 

Meta, parent of Facebook, listed an entire 435,000-square-foot office building at 181 Fremont Street for sublease.

This month, Visa put its 190,000-square-foot office at One Market Street on the sublease market before its move to a new complex south of Oracle Park in Mission Bay.

In January, Autodesk listed 73,000 square feet for sublease at One Market Street, citing a rise in flexible work. 

 

— Dana Bartholomew

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