Kevin Truong

After years of growth that included billions in acquisitions, major hiring initiatives and the development of major office towers around the world, San Francisco-based Salesforce is tightening its belt.

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After years of growth that included billions in acquisitions, major hiring initiatives and the development of major office towers around the world, San Francisco-based Salesforce is tightening its belt.

Although <a href="https://sfstandard.com/business/marc-benioff-is-sorry-about-salesforce-tower-explains-how-a-drunk-tweet-led-to-a-standoff-with-mike-pence/">defended by CEO Marc Benioff</a> as necessary to meet changing market conditions, a restructuring plan Salesforce <a href="https://sfstandard.com/business/salesforce-to-cut-10-of-workforce-close-offices/">announced earlier this year</a> includes a 10% headcount reduction of around 8,000 employees and a number of major exits and office space reductions across the company’s portfolio.&nbsp;

Although <a href="https://sfstandard.com/business/marc-benioff-is-sorry-about-salesforce-tower-explains-how-a-drunk-tweet-led-to-a-standoff-with-mike-pence/">defended by CEO Marc Benioff</a> as necessary to meet changing market conditions, a restructuring plan Salesforce <a href="https://sfstandard.com/business/salesforce-to-cut-10-of-workforce-close-offices/">announced earlier this year</a> includes a 10% headcount reduction of around 8,000 employees and a number of major exits and office space reductions across the company’s portfolio.&nbsp;

Further details were revealed in <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001108524/000110852423000011/crm-20230131.htm" target="_blank" rel="noreferrer noopener">a recent financial filing</a>, which showed how much real estate the tech giant still holds in San Francisco and how much it has let go.

Further details were revealed in <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001108524/000110852423000011/crm-20230131.htm" target="_blank" rel="noreferrer noopener">a recent financial filing</a>, which showed how much real estate the tech giant still holds in San Francisco and how much it has let go.

As of Jan. 31, the company’s San Francisco headquarters office included around 1.6 million square feet of leased and owned property. That number doesn’t include 800,000 square feet in San Francisco that is currently subleased and an additional 700,000 square feet now available for sublease.&nbsp;

As of Jan. 31, the company’s San Francisco headquarters office included around 1.6 million square feet of leased and owned property. That number doesn’t include 800,000 square feet in San Francisco that is currently subleased and an additional 700,000 square feet now available for sublease.&nbsp;

The company has steadily shed office space throughout the pandemic, most recently listing <a href="https://www.bizjournals.com/sanfrancisco/news/2023/03/02/saleforce-office-sublease-headquarters.html?utm_source=st&amp;utm_medium=en&amp;utm_campaign=ae&amp;utm_content=FR&amp;j=30714890&amp;senddate=2023-03-02" target="_blank" rel="noreferrer noopener">six floors for sublease at Salesforce Tower</a>, the San Francisco Business Times reported.&nbsp;

The company has steadily shed office space throughout the pandemic, most recently listing <a href="https://www.bizjournals.com/sanfrancisco/news/2023/03/02/saleforce-office-sublease-headquarters.html?utm_source=st&amp;utm_medium=en&amp;utm_campaign=ae&amp;utm_content=FR&amp;j=30714890&amp;senddate=2023-03-02" target="_blank" rel="noreferrer noopener">six floors for sublease at Salesforce Tower</a>, the San Francisco Business Times reported.&nbsp;

Outside of San Francisco, Salesforce has international real estate holdings across Europe, North America, Asia, South America, Africa and Australia. It also operates data centers in the U.S., Europe and Asia.

Outside of San Francisco, Salesforce has international real estate holdings across Europe, North America, Asia, South America, Africa and Australia. It also operates data centers in the U.S., Europe and Asia.

In the last fiscal year, Salesforce incurred $986 million in total operating lease costs. The filing states that there are additional future leases totaling $400 million, including agreements for offices yet to be constructed, which are expected to commence between fiscal years 2024 and 2025.

In the last fiscal year, Salesforce incurred $986 million in total operating lease costs. The filing states that there are additional future leases totaling $400 million, including agreements for offices yet to be constructed, which are expected to commence between fiscal years 2024 and 2025.

Benioff, who once said that full-time office work is largely over, has started to pull back employees in, albeit with more flexibility. He has been open that he believes newer employees especially do better when being trained and onboarded in the office.&nbsp;

Benioff, who once said that full-time office work is largely over, has started to pull back employees in, albeit with more flexibility. He has been open that he believes newer employees especially do better when being trained and onboarded in the office.&nbsp;

Salesforce founder and CEO Marc Benioff speaks during the grand opening of the Salesforce Tower, the tallest building in San Francisco, Calif., Tuesday, May 22, 2018. | Karl Mondon/Bay Area News Group via Getty Images

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/09/SalesforceBenioffFuture091222_INLINED02-2500x1651.jpg" alt="" class="wp-image-76221"/><figcaption class="wp-element-caption">Salesforce founder and CEO Marc Benioff speaks during the grand opening of the Salesforce Tower, the tallest building in San Francisco, on May 22, 2018. | Karl Mondon/Bay Area News Group via Getty Images</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/09/SalesforceBenioffFuture091222_INLINED02-2500x1651.jpg" alt="" class="wp-image-76221"/><figcaption class="wp-element-caption">Salesforce founder and CEO Marc Benioff speaks during the grand opening of the Salesforce Tower, the tallest building in San Francisco, on May 22, 2018. | Karl Mondon/Bay Area News Group via Getty Images</figcaption></figure>

Still, he said the number of fully remote workers is “going to increase dramatically” with in-office work largely determined by job function.&nbsp;

Still, he said the number of fully remote workers is “going to increase dramatically” with in-office work largely determined by job function.&nbsp;

Engineering workers, Benioff said, only come in 10 days a quarter, whereas non-remote general and administrative employees are expected to come in on Tuesdays, Wednesdays and Thursdays. For sales and marketing, they are “more of a four-day-a-week executive,” Benioff told tech journalist Kara Swisher in <a href="https://sfstandard.com/business/marc-benioff-is-sorry-about-salesforce-tower-explains-how-a-drunk-tweet-led-to-a-standoff-with-mike-pence/">a podcast interview</a>.&nbsp;

Engineering workers, Benioff said, only come in 10 days a quarter, whereas non-remote general and administrative employees are expected to come in on Tuesdays, Wednesdays and Thursdays. For sales and marketing, they are “more of a four-day-a-week executive,” Benioff told tech journalist Kara Swisher in <a href="https://sfstandard.com/business/marc-benioff-is-sorry-about-salesforce-tower-explains-how-a-drunk-tweet-led-to-a-standoff-with-mike-pence/">a podcast interview</a>.&nbsp;

Costs from the restructuring plan in the form of separation payments for employees and exit charges associated with office space reductions could total more than $2 billion.&nbsp;

Costs from the restructuring plan in the form of separation payments for employees and exit charges associated with office space reductions could total more than $2 billion.&nbsp;

Salesforce has incurred around $828 million in costs related to the restructuring, split up between $683 million in employee transition costs and $145 million for exit costs due to office space reductions.

Salesforce has incurred around $828 million in costs related to the restructuring, split up between $683 million in employee transition costs and $145 million for exit costs due to office space reductions.

The company’s layoffs are expected to be largely complete by the end of the fiscal year 2024, whereas its real estate reductions are expected to wrap up sometime in fiscal year 2026.

The company’s layoffs are expected to be largely complete by the end of the fiscal year 2024, whereas its real estate reductions are expected to wrap up sometime in fiscal year 2026.

The company has around $10.6 billion in senior unsecured debt, around $1 billion of which is due in the next 12 months. Among its liabilities is $182 million in outstanding debt related to the mortgage used to purchase 50 Fremont St. in San Francisco.

The company has around $10.6 billion in senior unsecured debt, around $1 billion of which is due in the next 12 months. Among its liabilities is $182 million in outstanding debt related to the mortgage used to purchase 50 Fremont St. in San Francisco.

Salesforce paid $640 million to purchase the 43-story building in 2015. Last year, the company <a href="https://www.bizjournals.com/sanfrancisco/news/2022/07/12/salesforce-sublease-san-francsico.html" target="_blank" rel="noreferrer noopener">listed more than half</a> of the building as available for sublease.&nbsp;

Salesforce paid $640 million to purchase the 43-story building in 2015. Last year, the company <a href="https://www.bizjournals.com/sanfrancisco/news/2022/07/12/salesforce-sublease-san-francsico.html" target="_blank" rel="noreferrer noopener">listed more than half</a> of the building as available for sublease.&nbsp;

Filing reveals how much office space Salesforce dumped last year

Garrett Leahy

A massive skyscraper could change San Francisco’s skyline forever and add 808 homes to the city.

A massive skyscraper could change San Francisco’s skyline forever and add 808 homes to the city.

The 50 Main Street tower would be the second tallest in the city after Salesforce Tower.&nbsp;

The 50 Main Street tower would be the second tallest in the city after Salesforce Tower.&nbsp;

If approved, it would be built on the site of a two-story parking garage between the Matson Building and an office tower at 77 Beale in the <a href="https://sfstandard.com/housing-development/massive-san-francisco-floating-cube-tower-may-bring-826-new-homes/" target="_blank" rel="noreferrer noopener">SoMa neighborhood</a>.

If approved, it would be built on the site of a two-story parking garage between the Matson Building and an office tower at 77 Beale in the <a href="https://sfstandard.com/housing-development/massive-san-francisco-floating-cube-tower-may-bring-826-new-homes/" target="_blank" rel="noreferrer noopener">SoMa neighborhood</a>.

The site is near the Embarcadero transit station entrances and within a few blocks of the Ferry Terminal and the Transbay Terminal.

The site is near the Embarcadero transit station entrances and within a few blocks of the Ferry Terminal and the Transbay Terminal.

Of the 808 rental units, 118 units would be listed as affordable. Roughly half of the units would be one-bedroom apartments, while the remaining half would be an almost even mix of studio and two-bedroom units, according to an informational packet outlining plans for the project.

Of the 808 rental units, 118 units would be listed as affordable. Roughly half of the units would be one-bedroom apartments, while the remaining half would be an almost even mix of studio and two-bedroom units, according to an informational packet outlining plans for the project.

Developer Hines says the project will help downtown’s recovery by repopulating the area along Market Street and increasing foot traffic to nearby restaurants and businesses.&nbsp;

Developer Hines says the project will help downtown’s recovery by repopulating the area along Market Street and increasing foot traffic to nearby restaurants and businesses.&nbsp;

Texas-based Hines describes the tower’s crown as “a beacon that will be a new jewel, complimenting the skyline of San Francisco with its understated elegance.”

Texas-based Hines describes the tower’s crown as “a beacon that will be a new jewel, complimenting the skyline of San Francisco with its understated elegance.”

The tower at 50 Main Street has been designed by architecture firm Foster and Partners. It features cross-braces between its middle and upper sections to protect it during earthquakes.

The tower at 50 Main Street has been designed by architecture firm Foster and Partners. It features cross-braces between its middle and upper sections to protect it during earthquakes.

Hines is the developer behind the plagued 33 Tehama residential highrise which experienced <a href="https://sfstandard.com/housing-development/san-francisco-luxury-apartment-floods-for-second-time-in-3-months-as-residents-return-date-still-in-doubt/" target="_blank" rel="noreferrer noopener">two floods in three months</a> due to a broken water main, releasing thousands of gallons of water into rooms and hallways and displacing residents into hotels. Hines was contacted for comment.

Hines is the developer behind the plagued 33 Tehama residential highrise which experienced <a href="https://sfstandard.com/housing-development/san-francisco-luxury-apartment-floods-for-second-time-in-3-months-as-residents-return-date-still-in-doubt/" target="_blank" rel="noreferrer noopener">two floods in three months</a> due to a broken water main, releasing thousands of gallons of water into rooms and hallways and displacing residents into hotels. Hines was contacted for comment.

Renderings of the 50 Main Street tower, it would be the second tallest in the city after Salesforce Tower if built. Developer Hines wants to include the tower as part of a wider development named City Grove in the SoMa neighborhood. It would include a new public park and multiple office buildings. | Courtesy of Hines, Pickard Chilton, Foster and Partners, PWP Landscape Architecture, and Kendall/Heaton Associates.

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/10/50main2.png" alt="" class="wp-image-79708"/><figcaption>Renderings show how 50 Main Street would stack up against Salesforce Tower in terms of height. | Courtesy of Hines, Pickard Chilton, Foster and Partners, PWP Landscape Architecture, and Kendall/Heaton Associates</figcaption></figure>

The estimated costs for the project are currently unknown but are likely to hit the $1 billion mark—if other projects of a similar size are used for comparison. Salesforce Tower for example, <a href="https://money.cnn.com/2018/05/23/technology/salesforce-tower/index.html" target="_blank" rel="noreferrer noopener">cost $1.1 billion and was completed in 2018</a>.

The estimated costs for the project are currently unknown but are likely to hit the $1 billion mark—if other projects of a similar size are used for comparison. Salesforce Tower for example, <a href="https://money.cnn.com/2018/05/23/technology/salesforce-tower/index.html" target="_blank" rel="noreferrer noopener">cost $1.1 billion and was completed in 2018</a>.

As with all early stage plans in San Francisco, there’s no guarantee it will ever be built. The project still has to be approved by the Planning Commission before it can apply for building permits. <a href="https://sfstandard.com/housing-development/how-san-francisco-makes-it-insanely-hard-to-build-housing/" target="_blank" rel="noreferrer noopener">The Standard has an explainer on how this works here</a>.

As with all early stage plans in San Francisco, there’s no guarantee it will ever be built. The project still has to be approved by the Planning Commission before it can apply for building permits. <a href="https://sfstandard.com/housing-development/how-san-francisco-makes-it-insanely-hard-to-build-housing/" target="_blank" rel="noreferrer noopener">The Standard has an explainer on how this works here</a>.

<h2 class="wp-block-heading" id="h-city-grove-development">City Grove Development</h2>

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<h2 id="h-city-grove-development">City Grove Development</h2>

Aerial rendering of City Grove development that would include the 50 Main Street tower. | Courtesy of Hines, Pickard Chilton, Foster and Partners, PWP Landscape Architecture, and Kendall/Heaton Associates.

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/10/citygrove.png" alt="" class="wp-image-79702"/><figcaption>Aerial rendering of City Grove development that would include the 50 Main Street tower. | Courtesy of Hines, Pickard Chilton, Foster and Partners, PWP Landscape Architecture, and Kendall/Heaton Associates.</figcaption></figure>

The tower at 50 Main Street is part of a larger Hines development named City Grove.

The tower at 50 Main Street is part of a larger Hines development named City Grove.

The larger development includes office and retail space at 215 Market, 245 Market, and 200 Mission.&nbsp;

The larger development includes office and retail space at 215 Market, 245 Market, and 200 Mission.&nbsp;

The project would have underground parking for up to 404 cars and a 1.25 acre public park, including an amphitheater.

The project would have underground parking for up to 404 cars and a 1.25 acre public park, including an amphitheater.

The existing office tower at 77 Beale Street would be renamed 200 Mission Street. It would be stripped of its exterior and its steel frame would be seismically retrofitted to current standards.&nbsp;

The existing office tower at 77 Beale Street would be renamed 200 Mission Street. It would be stripped of its exterior and its steel frame would be seismically retrofitted to current standards.&nbsp;

Developers plan to add nearly 50,000 square feet of office space along with a new facade designed by architecture firm Pickard Chilton.

Developers plan to add nearly 50,000 square feet of office space along with a new facade designed by architecture firm Pickard Chilton.

Renderings of the 50 Main Street tower, which would be the second tallest in the city after Salesforce Tower if built| 

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/10/50main-1.png" alt="" class="wp-image-79721"/><figcaption>Renderings of the 50 Main Street tower, which would be the second tallest in the city after Salesforce Tower if built. | Courtesy of Hines, Pickard Chilton, Foster and Partners, PWP Landscape Architecture, and Kendall/Heaton Associates</figcaption></figure>

Part of the redevelopment involves the preservation of two historic buildings at the site, 215 Market and 245 Market, which are the Matson Building and the PG&amp;E building.

Part of the redevelopment involves the preservation of two historic buildings at the site, 215 Market and 245 Market, which are the Matson Building and the PG&amp;E building.

The redevelopment of the block is a collaboration between several different companies including Hines, Pickard Chilton, Foster and Partners, PWP Landscape Architecture, and Kendall/Heaton Associates.

The redevelopment of the block is a collaboration between several different companies including Hines, Pickard Chilton, Foster and Partners, PWP Landscape Architecture, and Kendall/Heaton Associates.

The project must be approved by the Planning Commission and Historic Preservation Commission before moving forward. The Recreation and Parks Department must also approve shadow allowances for the project.

The project must be approved by the Planning Commission and Historic Preservation Commission before moving forward. The Recreation and Parks Department must also approve shadow allowances for the project.

Developers will present the project to the Planning Commission on October 6 to gather “early input” from the commission.

Developers will present the project to the Planning Commission on October 6 to gather “early input” from the commission.

Huge San Francisco skyscraper could change city skyline forever with 808 homes

The Standard Staff

Multiple windows were damaged at Salesforce East on Tuesday after high winds battered San Francisco, fire department officials said.

Multiple windows were damaged at Salesforce East on Tuesday after high winds battered San Francisco, fire department officials said.

The nearby Millennium Tower, a luxury residential building famous for tilting several inches after one corner began to sink, also saw a window break and fall from its structure, officials said. The Millennium Tower is at 301 Mission St., while Salesforce East is at 350 Mission St.

The nearby Millennium Tower, a luxury residential building famous for tilting several inches after one corner began to sink, also saw a window break and fall from its structure, officials said. The Millennium Tower is at 301 Mission St., while Salesforce East is at 350 Mission St.

No injuries have been reported relating to either incident, although a stretch of Mission Street was closed off overnight as a precaution, <a href="https://www.nbcbayarea.com/investigations/salesforce-tower-millennium-tower-winds/3186902/" target="_blank" rel="noreferrer noopener">reports NBC Bay Area</a>.

No injuries have been reported relating to either incident, although a stretch of Mission Street was closed off overnight as a precaution, <a href="https://www.nbcbayarea.com/investigations/salesforce-tower-millennium-tower-winds/3186902/" target="_blank" rel="noreferrer noopener">reports NBC Bay Area</a>.

Department of Building Inspection spokesperson Patrick Hannan told NBC that multiple windows cracked or failed between the 11th and 30th floors of Salesforce East on its Mission Street side. Hannan said at least one window was found to be cracked on each of those floors. Inspectors found one window on the 49th floor of the Millennium Tower that had failed.

Department of Building Inspection spokesperson Patrick Hannan told NBC that multiple windows cracked or failed between the 11th and 30th floors of Salesforce East on its Mission Street side. Hannan said at least one window was found to be cracked on each of those floors. Inspectors found one window on the 49th floor of the Millennium Tower that had failed.

The fire department confirmed the incident on <a href="https://twitter.com/SFFDPIO/status/1638554743953059841?s=20" target="_blank" rel="noreferrer noopener">Twitter Wednesday morning</a>.

The fire department confirmed the incident on <a href="https://twitter.com/SFFDPIO/status/1638554743953059841?s=20" target="_blank" rel="noreferrer noopener">Twitter Wednesday morning</a>.

Glass was also seen falling from the high rise at 50 California St. on Tuesday just after 3 p.m.

Glass was also seen falling from the high rise at 50 California St. on Tuesday just after 3 p.m.

READ MORE: <a href="https://sfstandard.com/housing-development/huge-tree-smashes-into-san-francisco-homes-families-fear-itll-happen-again/">Huge Tree Smashes Into San Francisco Homes. Families Fear It’ll Happen Again</a>

READ MORE: <a href="https://sfstandard.com/housing-development/huge-tree-smashes-into-san-francisco-homes-families-fear-itll-happen-again/">Huge Tree Smashes Into San Francisco Homes. Families Fear It’ll Happen Again</a>

Tuesday&#8217;s high wind speeds <a href="https://sfstandard.com/transportation/big-rig-rolls-over-on-bay-bridge-major-delays-expected/">saw a big rig semitruck rollover on the Bay Bridge</a>, snarling traffic for hours.

Tuesday's high wind speeds <a href="https://sfstandard.com/transportation/big-rig-rolls-over-on-bay-bridge-major-delays-expected/">saw a big rig semitruck rollover on the Bay Bridge</a>, snarling traffic for hours.

Tuesday&#8217;s high wind speeds <a href="https://sfstandard.com/transportation/big-rig-rolls-over-on-bay-bridge-major-delays-expected/">saw a big rig semitruck rollover on the Bay Bridge</a>, snarling traffic for hours.

Glass also fell from&nbsp;<a href="https://sfstandard.com/weather/glass-falling-from-downtown-san-francisco-high-rise/">555 California St. on March 14</a>, causing road closures and the enactment of shelter-in-place orders, as storms battered the city.

Glass also fell from&nbsp;<a href="https://sfstandard.com/weather/glass-falling-from-downtown-san-francisco-high-rise/">555 California St. on March 14</a>, causing road closures and the enactment of shelter-in-place orders, as storms battered the city.

On March 16,&nbsp;<a href="https://sfstandard.com/housing-development/glass-fell-from-the-sky-in-downtown-san-francisco-officials-say-no-cause-for-alarm/">city officials told The Standard that the most recent window breakages</a>&nbsp;were not reflective of the overall state of Downtown San Francisco buildings, and that no new window retrofit plan would be put in place, as an inspection program already exists.

On March 16,&nbsp;<a href="https://sfstandard.com/housing-development/glass-fell-from-the-sky-in-downtown-san-francisco-officials-say-no-cause-for-alarm/">city officials told The Standard that the most recent window breakages</a>&nbsp;were not reflective of the overall state of Downtown San Francisco buildings, and that no new window retrofit plan would be put in place, as an inspection program already exists.

Correction: A previous version of this article incorrectly stated Salesforce Tower sustained damaged windows as reported by other media.

Correction: A previous version of this article incorrectly stated Salesforce Tower sustained damaged windows as reported by other media.

Salesforce East, Millennium Tower windows fail in high winds

Annie Gaus

Salesforce is ditching the last of its remaining office space at 350 Mission St., listing 104,051 square feet for sublease at the tower known as Salesforce East.

Salesforce is ditching the last of its remaining office space at 350 Mission St., listing 104,051 square feet for sublease at the tower known as Salesforce East.

The office space is spread across six floors, according to a listing viewed by The Standard. The SoMa high-rise became known as Salesforce East when the software firm leased the entirety of the building more than 10 years ago.

The office space is spread across six floors, according to a listing viewed by The Standard. The SoMa high-rise became known as Salesforce East when the software firm leased the entirety of the building more than 10 years ago.

Salesforce, one of San Francisco&#8217;s largest private employers, has been steadily dumping office space since the onset of the pandemic. It had already listed most of its space at Salesforce East, some of which has been <a href="https://www.bizjournals.com/sanfrancisco/news/2023/04/11/s-f-salesforce-office-tower-sublease.html">absorbed by other companies</a>, according to the San Francisco Business Times.

Salesforce, one of San Francisco's largest private employers, has been steadily dumping office space since the onset of the pandemic. It had already listed most of its space at Salesforce East, some of which has been <a href="https://www.bizjournals.com/sanfrancisco/news/2023/04/11/s-f-salesforce-office-tower-sublease.html">absorbed by other companies</a>, according to the San Francisco Business Times.

Salesforce, one of San Francisco&#8217;s largest private employers, has been steadily dumping office space since the onset of the pandemic. It had already listed most of its space at Salesforce East, some of which has been <a href="https://www.bizjournals.com/sanfrancisco/news/2023/04/11/s-f-salesforce-office-tower-sublease.html">absorbed by other companies</a>, according to the San Francisco Business Times.

As of Jan. 31, the company’s San Francisco headquarters included around 1.6 million square feet of leased and owned property, not including 800,000 square feet subleased in San Francisco and another 700,000 square feet available for sublease.&nbsp;Last month, the SF Business Times reported that Salesforce listed six floors for <a href="https://www.bizjournals.com/sanfrancisco/news/2023/03/02/saleforce-office-sublease-headquarters.html?utm_source=st&amp;utm_medium=en&amp;utm_campaign=ae&amp;utm_content=FR&amp;j=30714890&amp;senddate=2023-03-02">sublease at Salesfo</a><a href="https://www.bizjournals.com/sanfrancisco/news/2023/03/02/saleforce-office-sublease-headquarters.html?utm_source=st&amp;utm_medium=en&amp;utm_campaign=ae&amp;utm_content=FR&amp;j=30714890&amp;senddate=2023-03-02" target="_blank" rel="noreferrer noopener">r</a><a href="https://www.bizjournals.com/sanfrancisco/news/2023/03/02/saleforce-office-sublease-headquarters.html?utm_source=st&amp;utm_medium=en&amp;utm_campaign=ae&amp;utm_content=FR&amp;j=30714890&amp;senddate=2023-03-02">ce Tower</a>.

As of Jan. 31, the company’s San Francisco headquarters included around 1.6 million square feet of leased and owned property, not including 800,000 square feet subleased in San Francisco and another 700,000 square feet available for sublease.&nbsp;Last month, the SF Business Times reported that Salesforce listed six floors for <a href="https://www.bizjournals.com/sanfrancisco/news/2023/03/02/saleforce-office-sublease-headquarters.html?utm_source=st&amp;utm_medium=en&amp;utm_campaign=ae&amp;utm_content=FR&amp;j=30714890&amp;senddate=2023-03-02">sublease at Salesfo</a><a href="https://www.bizjournals.com/sanfrancisco/news/2023/03/02/saleforce-office-sublease-headquarters.html?utm_source=st&amp;utm_medium=en&amp;utm_campaign=ae&amp;utm_content=FR&amp;j=30714890&amp;senddate=2023-03-02" target="_blank" rel="noreferrer noopener">r</a><a href="https://www.bizjournals.com/sanfrancisco/news/2023/03/02/saleforce-office-sublease-headquarters.html?utm_source=st&amp;utm_medium=en&amp;utm_campaign=ae&amp;utm_content=FR&amp;j=30714890&amp;senddate=2023-03-02">ce Tower</a>.

A Salesforce spokesperson confirmed the sublease and said it was part of a restructuring announced in January.

A Salesforce spokesperson confirmed the sublease and said it was part of a restructuring announced in January.

The latest <a href="https://sfstandard.com/business/salesforce-looks-to-dump-its-remaining-office-space-at-salesforce-east/">analysis of the San Francisco market</a> shows that Salesforce holds more sublease space than any other company in the city. The addition of the Salesforce East property brings the company&#8217;s total to more than 700,000 square feet of office space in the city on the sublease market.

The latest <a href="https://sfstandard.com/business/salesforce-looks-to-dump-its-remaining-office-space-at-salesforce-east/">analysis of the San Francisco market</a> shows that Salesforce holds more sublease space than any other company in the city. The addition of the Salesforce East property brings the company's total to more than 700,000 square feet of office space in the city on the sublease market.

The latest <a href="https://sfstandard.com/business/salesforce-looks-to-dump-its-remaining-office-space-at-salesforce-east/">analysis of the San Francisco market</a> shows that Salesforce holds more sublease space than any other company in the city. The addition of the Salesforce East property brings the company&#8217;s total to more than 700,000 square feet of office space in the city on the sublease market.

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That restructuring included a 10% layoff that <a href="https://sfstandard.com/business/salesforce-axes-752-employees-in-san-francisco/">affected 752 employees</a> at its San Francisco offices, according to a state filing. Activist investors including Elliott Management, Starboard Value and others have bought up shares in the company in an effort to pressure the firm to boost profits.

That restructuring included a 10% layoff that <a href="https://sfstandard.com/business/salesforce-axes-752-employees-in-san-francisco/">affected 752 employees</a> at its San Francisco offices, according to a state filing. Activist investors including Elliott Management, Starboard Value and others have bought up shares in the company in an effort to pressure the firm to boost profits.

As part to the restructuring, Salesforce CEO Marc Benioff&nbsp;said in January that the company would <a href="https://sfstandard.com/business/salesforce-to-cut-10-of-workforce-close-offices/">close offices</a> and continue to trim its real estate holdings to cut costs. Echoing other tech executives that <a href="https://sfstandard.com/business/tech-scaled-too-quickly-and-now-the-bay-area-is-paying-the-price/">have laid off workers</a>, Benioff pinned the layoffs on overhiring during the pandemic.

As part to the restructuring, Salesforce CEO Marc Benioff&nbsp;said in January that the company would <a href="https://sfstandard.com/business/salesforce-to-cut-10-of-workforce-close-offices/">close offices</a> and continue to trim its real estate holdings to cut costs. Echoing other tech executives that <a href="https://sfstandard.com/business/tech-scaled-too-quickly-and-now-the-bay-area-is-paying-the-price/">have laid off workers</a>, Benioff pinned the layoffs on overhiring during the pandemic.

In an interview with <a href="https://sfstandard.com/business/salesforce-considers-more-layoffs-amid-activist-pressure-report/">Bloomberg last month</a>, Salesforce Chief Operating Officer Brian Millham&nbsp;said that the company may lay off more workers to improve efficiency. The firm is working with the consulting firm Bain &amp; Co. on a review of its business.

In an interview with <a href="https://sfstandard.com/business/salesforce-considers-more-layoffs-amid-activist-pressure-report/">Bloomberg last month</a>, Salesforce Chief Operating Officer Brian Millham&nbsp;said that the company may lay off more workers to improve efficiency. The firm is working with the consulting firm Bain &amp; Co. on a review of its business.

The Salesforce East property reinforces the company&#8217;s position as the <a href="https://sfstandard.com/research-data/san-francisco-commerical-real-estate-crash-office-space-sublease/">largest sublessor of office space</a> in San Francisco.

The Salesforce East property reinforces the company's position as the <a href="https://sfstandard.com/research-data/san-francisco-commerical-real-estate-crash-office-space-sublease/">largest sublessor of office space</a> in San Francisco.

The Salesforce East property reinforces the company&#8217;s position as the <a href="https://sfstandard.com/research-data/san-francisco-commerical-real-estate-crash-office-space-sublease/">largest sublessor of office space</a> in San Francisco.

Salesforce is leaving a San Francisco office tower bearing its name

Shelley D. Fargo

Maryann Jones Thompson

The past year hasn’t been a banner one for San Francisco’s office towers. As the city gained the title of the <a href="https://sfstandard.com/research-data/san-francisco-leads-nation-work-from-home-census/">nation’s work-from-home capital</a>, its <a href="https://sfstandard.com/business/san-francisco-braces-for-epic-commercial-real-estate-crash/">commercial real estate sector lost tenants</a>, and as a result, the <a href="https://sfstandard.com/politics/city-hall/mayor-breed-orders-belt-tightening-as-budget-shortfall-soars/">city now faces a budget shortfall</a> because of lower tax revenue.&nbsp;

The past year hasn’t been a banner one for San Francisco’s office towers. As the city gained the title of the <a href="https://sfstandard.com/research-data/san-francisco-leads-nation-work-from-home-census/">nation’s work-from-home capital</a>, its <a href="https://sfstandard.com/business/san-francisco-braces-for-epic-commercial-real-estate-crash/">commercial real estate sector lost tenants</a>, and as a result, the <a href="https://sfstandard.com/politics/city-hall/mayor-breed-orders-belt-tightening-as-budget-shortfall-soars/">city now faces a budget shortfall</a> because of lower tax revenue.&nbsp;

Last week, Meta announced it would <a href="https://www.bizjournals.com/sanfrancisco/news/2023/01/19/meta-san-francisco-sublease.html">give up 435,000 of its square feet</a> at the luxury 181 Fremont St. tower, the latest move in the company’s effort to <a href="https://therealdeal.com/2022/10/27/meta-to-spend-3b-to-shrink-office-footprint/">“recalibrate”</a> its leases around the world.&nbsp;The space which primarily housed Instagram&#8217;s employees is now the largest sublease available in San Francisco.&nbsp;

Last week, Meta announced it would <a href="https://www.bizjournals.com/sanfrancisco/news/2023/01/19/meta-san-francisco-sublease.html">give up 435,000 of its square feet</a> at the luxury 181 Fremont St. tower, the latest move in the company’s effort to <a href="https://therealdeal.com/2022/10/27/meta-to-spend-3b-to-shrink-office-footprint/">“recalibrate”</a> its leases around the world.&nbsp;The space which primarily housed Instagram's employees is now the largest sublease available in San Francisco.&nbsp;

Last week, Meta announced it would <a href="https://www.bizjournals.com/sanfrancisco/news/2023/01/19/meta-san-francisco-sublease.html">give up 435,000 of its square feet</a> at the luxury 181 Fremont St. tower, the latest move in the company’s effort to <a href="https://therealdeal.com/2022/10/27/meta-to-spend-3b-to-shrink-office-footprint/">“recalibrate”</a> its leases around the world.&nbsp;The space which primarily housed Instagram&#8217;s employees is now the largest sublease available in San Francisco.&nbsp;

And though the announcement places Meta at No. 2 in terms of most SF office space left behind in the past year, the top spot is still held by Block: The owner of Square said last June that it would not renew its 470,000-square-foot lease on Market Street when it expires this fall.

And though the announcement places Meta at No. 2 in terms of most SF office space left behind in the past year, the top spot is still held by Block: The owner of Square said last June that it would not renew its 470,000-square-foot lease on Market Street when it expires this fall.

In total, the 2.4 million square feet being vacated by the 10 companies below is about on par with the combined total office space at San Francisco’s three tallest towers—181 Fremont, the Transamerica Tower and the Salesforce Tower.

In total, the 2.4 million square feet being vacated by the 10 companies below is about on par with the combined total office space at San Francisco’s three tallest towers—181 Fremont, the Transamerica Tower and the Salesforce Tower.

Correction: The headline for this story was revised to clarify these companies&#8217; moves as &#8220;vacating&#8221; office space rather than &#8220;abandoning&#8221; it.

Correction: The headline for this story was revised to clarify these companies' moves as "vacating" office space rather than "abandoning" it.

Correction: The headline for this story was revised to clarify these companies&#8217; moves as &#8220;vacating&#8221; office space rather than &#8220;abandoning&#8221; it.

Here are the tech companies that vacated the most San Francisco office space

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A California artificial intelligence safety bill vilified by much of the tech industry is now on Governor Newsom's desk pending signature. Our business editor Kevin Truong and tech reporter Priya Anand sit down with the bill's author, State Senator Scott Wiener, to ask: Will this bill protect the future of the industry with industry-first regulation or could it kill what many see as San Francisco's next boom industry?

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Here are the tech companies that vacated the most San Francisco office space