Six Reasons To Get Excited About SoMa
Tech titans like Dropbox, LinkedIn and Salesforce have been on a feeding frenzy when it comes to eating up big chunks of SoMa space. (For some, Shark Week is year round.) That's why we're pumped to host our SoMa's Next Phase event at Hotel Nikko on July 22, starting at 730am. Here's what you need to know.
1. Vacancy Near Zero
Among our panelists will be Kilroy EVP of NorCal Mike Sanford, who tells us the SoMa market remains very strong with Class-A vacancy near zero. Kilroy's S.F. portfolio is 99% leased, so "we are right in line with the market." The biggest issue, he says, is supply: "I wish we had more projects to lease in SoMa!"
2. Dropbox Poised To Occupy Soon
Mike also tells us Kilroy's project at 333 Brannan (pictured) will be substantially complete in the next 30 days. One big perk of the LEED Platinum project: a sizable rooftop deck. Dropbox made a big splash in the market last February when it inked the deal to take the whole 180k SF building. Days later, it tacked on an additional 100k SF next door by taking all of 345 Brannan, being developed by Breevast.
3. Healthy Competition
Another panelist will be Breevast US CEO Terry Crowley, who will tell us more about 345 (above). The Dropbox deal showed dueling developers could jump into bed together for their mutual benefit. Dropbox acted fast in the tech-heavy SoMa market and beat out Pinterest for 333. The buildings will stand about a foot apart and be connected by bridges.
4. LinkedIn Quickly Readying Space
Last year Bisnow was first to report about the gigantic LinkedIn lease that engulfed all of Tishman's 26-story building at 222 2nd. Now we're excited to hear what finishing touches the company is putting in the 452k SF property from LinkedIn VP, workplace James Morgensen, who's a panelist. In classic tech form, LinkedIn says no to cubes and offices and yes to floor-to-ceiling windows, benching systems and clear conference rooms.
5. Salesforce Tower
Another panelist will be Boston Properties senior project manager Michael Tymoff, who will tell us more about the 61-story tower rising at First and Mission, where Salesforce famously inked the biggest lease in S.F. history—714k SF—last year. Now, with the other half of Boston and Hines' skyscraper still left to lease, all eyes are on what tenant—or tenants—will call the tallest building West of the Mississippi home. (There's "great activity but no new deals yet," Hines senior managing director Paul Paradis just told us in an email.)
6. Bidding Wars
Also on tap to speak: Hudson Pacific SVP NorCal Drew Gordon, here on a previous Bisnow panel at GitHub's HQ building it owns at 275 Brannan. Competition to own in S.F. continues to be steep; Hudson was up against 26 other bidders at 275. Being aggressive is key, and they plunked down a nonrefundable offer. He also counts Uber and Square as tenants in the city, and we've got Square global facilities manager Maja Henderson on the panel to tell us about the company's real estate strategy. The SoMa's Next Phase event kicks off at 7:30am at Hotel Nikko on July 22. Register now!