SAN FRANCISCO—Salesforce canceled their lease on its 325,000-square-foot at the Parcel F Tower that was planned to be built in the San Francisco’s Transbay District. In February, Salesforce adopted a permanent remote work policy due to the pandemic, allowing employees to work from home one to three days a week. Salesforce stated last month that the new policy would shape their real estate plans.
The news was first reported by the San Francisco Business Times on Monday, March 8 real estate developer Hines stated during a city hearing, the Salesforce lease for Parcel F, “…is no longer in hand.” The new tower was planned to be 61-stories of office space for Salesforce that is no longer needed under its new policies.
Hines, which is affiliated with Urban Pacific Development and Goldman Sachs, purchased the site in 2016 for $175 million and is now looking for a new business to sign a lease. This new development is not the first pivot Salesforce has made. On August 26, 2020 Salesforce notified 1,000 of it’s 54,000 local employees of job cuts and gave them 60 days to find new roles within the company. It was the result of Salesforce reporting a record $5.15 billion in sales for the quarter before the layoffs were to take effect.
Several tech companies recently shifted their real estate plans due to the pandemic. In August 2020, Pinterest cancelled their 490,000-square-foot lease in the South of Market’s 88 Bluxome project. No details have been announced on Salesforce’s plans after agreeing to buy Slack, the work communications company, for $27.7 billion in cash and stock in January 2021. Slack has offices nearby in the Transbay Area.