Dropbox Signs Largest Office Lease in San Francisco's History
The largest office lease in San Francisco's history was recently signed by file hosting company, Dropbox Inc. Dropbox is taking all 736,000 square feet of the Exchange in Mission Bay.
The deal is a success from developer Kilroy Realty Corporation, which had been talking with prospective tenants for two years, and was building the $570 million, four-building project at 1800 Owens Street without any committed tenants.
Dropbox's new fifteen year lease surpasses the city's previous largest lease, held by Salesforce.com Inc. Salesforce.com currently leases 714,000 square feet at Salesforce Tower. Other recent six-figure leases from large tech companies include: Facebook Inc., Amazon.com, Inc., and Alphabet, Inc.
“We’re delighted to have Dropbox as our tenant at the Exchange,” said John Kilroy, CEO of Kilroy Realty, in a statement. “This dynamic organization and their highly skilled workforce inspires us and our design as we look to the future and anticipate the needs of today’s creative workforce. Dropbox’s expansion at the Exchange is an excellent example of the entrepreneurship and innovation that drives San Francisco’s economy and has made the city one of the strongest commercial real estate markets in the world.”
The Exchange was the city's fourth largest approved or under construction office project without tenants in tow. The rental rate was not released, but new projects in the area typically seek $80 per square foot or more annually.
“We’re excited to partner with Kilroy to create a new home for our growing team. The Exchange is a space that will reflect our creative culture and inspire us to continue building great products for our users,” said Drew Houston, CEO of Dropbox, in a statement.
Kilroy's next big office project is the 2 million-square-foot Flower Mart redevelopment, which awaits the city's Central SoMa rezoning. It also has an agreement to buy the 2 million-square-foot Oyster Point project in South San Francisco, according to public records.