Macys.com Expands at 10-Story Tower

SAN FRANCISCO-Macys.com has signed a lease expansion of two additional floors for an aggregate 100,000 square feet of office space at the Monadnock building, located at 685 Market St. A subsidiary of Macy’s Inc., the online department store leased an additional 37,737 square feet at the 10-story tower in downtown San Francisco. 

According to Macy’s Inc., the combined online sales volume of Macys.com and Bloomingdales.com was up approximately 29.3% year-over-year as of September 2010. As GlobeSt.com previously reported, Macys.com signed a 10-year lease for the top three floors of the building, which total 56,500 square feet, and a month-to-month lease for an additional 13,000 square feet on the sixth floor. At the time, the asking base lease rate for the space prior to negotiations was in the high $30s per square foot, however at the time, given Macy’s strong credit, long-term commitment and substantial space needs, sources told GlobeSt.com the retailer would likely received a discount as well as a tenant improvement allowance. At the time, Macys.com chose 685 Market St. for its historical significance and aesthetics, its natural light, and its proximity to its Union Square retail store and offices.