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In a submarket that’s struggled with occupancy since the start of the pandemic, product development platform maker Figma has recommitted to its 97.6K SF of office space in Union Square.
Figma and its 1,400 employees will stay in its space at the Phelan Building at 760 Market St. The renewal is one of a handful occurring among tech companies in San Francisco, where the likes of Meta and Salesforce have vacated office space in large chunks.
“We’re excited to have retained one of San Francisco’s tech giants, a sign of the city’s post-pandemic resurgence,” said Newmark Vice Chairman Mike Brown, who represented the landlord, Phelan Building LLC.
After four years of hardship in the office market, San Francisco is showing signs of beginning a long climb back to pre-pandemic health, with many in the market believing property values have hit bottom.
Figma had already demonstrated an interest in maintaining its office space after the pandemic set in. It moved into the Phelan Building in May 2021.
"In the past few years, we’ve created a thoughtfully designed home within the Phelan Building that both represents our values and encourages creativity and collaboration,” a Figma spokesperson said. “As we continue to grow our employee and customer base, we want to be able to welcome Figmates and visitors alike into a space that feels warm, playful and vibrant.”
The company is also growing its physical footprint in New York, London, Paris, Berlin, Tokyo and Singapore.
“This lease renewal amid aggressive landlord pursuits speaks volumes about the building’s plug-and-play nature and strategic positioning,” said Patrick Hotung, president of Phelan Building LLC.
Hotung said the lease renewal underscores the property's appeal and location and “reflects a broader trend of tech companies solidifying their presence in San Francisco.”
In the first quarter, CBRE reported that office vacancy in San Francisco’s central business districts was 33.9%.
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