Snap Looking To Reverse Course, Lease 30K SF in Levi's Plaza

Levi's Plaza In San Francisco

Snapchat's parent company appears to have executed an about-face regarding its office presence in San Francisco, according to the San Francisco Business Times.

Fewer than nine months after the company joined the tech exodus from the SoMa neighborhood of downtown San Francisco, Snap is reportedly seeking to lease 30K SF in Levi’s Plaza, north of Market Street.

Last October, Snap pulled out of a similarly sized office space at 875 Howard St., citing general cost restructuring and an increasing acceptance of remote work for employees. The company also laid off 500 workers at the time.

The layoffs and office closure meant the social media messaging app had no presence in San Francisco. Levi’s Plaza is owned by Jamestown Properties and serves as the headquarters for Levi Strauss.

Snap CEO Evan Spiegel said last November that the company would revise its remote work policy and require employees to return to the office for at least four days a week. The comments followed a quarter where the company saw its slowest sales growth in its history.

The news is positive for San Francisco’s foundering office market.

The office vacancy rate for San Francisco rose to 31.6%, a historic high, in Q2 2023, according to CBRE. Net negative absorption reached 1.83M SF in the quarter, and rents have started to decline slightly, by 4.3% year-over-year, according to the report.

Rent declines could produce opportunities for companies like Snap to hop back in the market with favorable terms. Snap’s stock price rose 5% on Wednesday and has surged about 30% over the past month.

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