Uber is looking to offload the entirety of one of its new headquarters buildings in San Francisco's Mission Bay neighborhood on the sublease market, according to a brochure marketing the property.
But in perhaps the clearest distillation of the city's commercial real estate conundrum, the 285,000-square-foot, fully furnished property at 1725 Third St. directly adjacent to Chase Center was never even occupied by the ride-hailing company. News of Uber marketing the space was first reported by the San Francisco Business Times. The property is being marketed by JLL.
“We are in the early stages of seeking interest in subleasing one of our four buildings in Mission Bay. As one of our buildings is currently unoccupied, this will not change our footprint in the city or impact space available for employees," said an Uber spokesperson. "We remain committed to our hybrid work approach which emphasizes in-person collaboration and continue to welcome employees to our Mission Bay campus.”
The new inventory will add additional downward pressure to a commercial real estate market that has seen a dramatic boost in vacancies.
According to research from JLL, the total vacancy rate in San Francisco—including available sublease space—sat at 26.4% in the first quarter. That's equivalent to some 22.8 million square feet open and available in the market.
The 1725 Third St. building was developed by Alexandria Real Estate Equities as part of a four-building headquarters campus that was initially completed during the pandemic in 2021. The 11-story building can fit a total headcount of around 1,534 workers and has 73 parking spaces, according to the marketing materials.
Amenities include a 15,000-square-foot outdoor terrace on the seventh floor, bleacher seating with views of Chase Center Plaza and a commercial cafeteria and kitchen on the sixth floor.
Although the company made it an official policy last year to require most employees to come into the office twice a week, the shift to a hybrid work culture coupled with a drive toward profitability over revenue growth has cut its demand for real estate.
Uber's headquarters campus totals four buildings containing more than a million square feet on Third Street: 1725 Third St., 1655 Third St., 1455 Third St. and 1515 Third St.
In a 2022 blog post, the company's director of corporate real estate said more than 3,500 employees would be based at its headquarters, including the majority of its executive leadership team.
Kevin Truong can be reached at [email protected]