Dutch fintech firm Adyen is poised to sublease 130,000 square feet of offices in San Francisco’s SoMa.
The Amsterdam-based financial technology company is close to signing a sublease from Pinterest at 505 Brannan Street, the San Francisco Chronicle reported, citing two unidentified sources close to the deal. The sublease would run through May 2033.
Financial terms of the pending office deal, which could be the largest in the city this year, were not disclosed.
If the deal closes in the next few weeks, Adyen will vacate its offices at 274 Brannan Street. A major rival of Stripe, a payment processing firm based in South San Francisco and Dublin, Adyen saw a 22 percent burst in revenue last year, according to an earnings report.
The South of Market lease would help lower the city’s office vacancy of 35.9 percent following a broad shift led by tech firms to remote work. Artificial intelligence firms, including OpenAI and Anthropic, have also signed new office leases.
In 2015, Pinterest leased offices at the six-story building at 505 Brannan as its fourth office within a half-mile in South of Market. The 150,000-square-foot building, developed by Pasadena-based Alexandria Real Estate Equities and locally based TMG Partners, was completed in 2016.
But the image-sharing social media platform bailed out of the building last year and put the offices on the sublease market.
Pinterest, one of the first firms to shed offices during the pandemic, paid nearly $90 million to terminate its lease for 490,000 square feet at an unbuilt tower at 88 Bluxome Street, in SoMa. In late 2022, it also vacated two floors at 410 Townsend Street nearby.
Early last year, the company planned to reduce its workforce by 4 percent and to close another office at 149 Bluxome Street.
At the end of last year, Pinterest had 500,000 square feet of remaining office leases around the world, according to a public filing this year, saying its facilities “are sufficient for our existing needs.”
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Pinterest to bail out of SF offices in SoMa
In October, TMG filed plans to add 11 stories above its six-story office project at 505 Brannon, including an unspecified number of apartments or condominiums, according to SFYimby.
In late 2020, Singapore-based Ascendas Real Estate Investment Trust bought the buildings at 505 Brannon and 510 Townsend for $572 million. Ascendas REIT is a unit of Capitaland International, a public company owned by the government of Singapore.
— Dana Bartholomew