SAN FRANCISCO-Hudson Pacific Properties Inc. has signed a lease at 1455 Market St., a 22-story, class-A office building here, with Square Inc., an electronic payment service provider that enables credit-card payments through mobile devices. The lease comprises the 246,078 square feet of initial occupancy and includes an expansion option for an additional 81,453 square feet, bringing the potential combined total occupancy for Square Inc. to 327,432 square feet.
The tennat plans to occupy 181,805 square feet in early 2013, followed by an additional 15,741 square feet in July 2013 and 48,532 square feet in early 2014. The firm has the option to occupy the additional 81,354 square feet in early 2014. The 246,078 square feet backfills 206,760 square feet of space occupied by the project’s largest tenant and takes an additional 39,318 square feet of currently vacant space. If Square exercises its option for the additional 81,354 square feet, it would backfill a total of 288,114 square feet currently occupied by the project’s largest tenant.
“This new lease represents a long-term commitment from a leading technology company at starting rents above our underwritten and expiring rents for this same space,” said Victor J. Coleman, chairman and CEO of HPP, in a prepared statement. “Our success in attracting exceptional tenants like Square to 1455 Market continues to unlock this asset’s value potential.”
1455 Market St. is situated on 3.01 acres in the bustling mid-market submarket of San Francisco, which is fast becoming one of the city’s newest technology and business hubs. The tower is in close proximity to Twitter’s new corporate headquarters and some of the city’s largest government and cultural institutions.
As GlobeSt.com previously reported, in December 2010 HPP acquired the 1455 Market St. office tower for $93 million in a transaction with Bank of America and Strada Investment Group.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
