Pinterest Looks To Further Reduce San Francisco Office Space

The Building At 505 Brannan St.

Pinterest will further reduce its office footprint in downtown San Francisco, the San Francisco Business Times reported on Tuesday.

The company will pay at least $100M to consolidate office space in San Francisco, retaining its headquarters at 651 Brannan St. while vacating office space at 505 Brannan St. and 149 Bluxome St., the company said in a Securities and Exchange Commission filing submitted on Monday.

"The company currently intends to continue to pay all contractual rent payments but plans to sublease all or a portion of our office space at 505 Brannan Street and negotiate early lease terminations, which could materially affect the company’s cash flows," Pinterest said in its filing.

The move came one month after the company said it would lay off 4% of its workforce in a cost-cutting effort. The company will work toward subleasing the office space at 505 Brannan St., where it holds a 10-year lease.

That space will join a crowded market.

Salesforce recently announced it was exploring subleasing office space in the building that bears its own name, and in January, Meta said it would vacate 435K SF downtown.

CBRE reported vacancy rates in the area as high as 29.4% in the first quarter.

The building at 505 Brannan St. was completed in 2016 and is co-owned by Alexandria Real Estate Equities and TMG Partners. Pinterest late last year also said it would vacate office space at 410 Townsend St. in downtown San Francisco, electing not to renew its lease at the property.

The social media service announced positive annual earnings in December, but the stock has continued to fall from its pandemic highs. It traded down 4.28% on Tuesday, a larger dip than the 0.45% downturn for the Nasdaq Composite.

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Related Topics: Pinterest , SF SoMa , Sublease
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