Wednesday, December 18, 2013

Intuit inks blockbuster lease in San Francisco for DemandForce Expansion

JK Dineen for the SF Business Times writes: Intuit has leased about 200,000 square feet at 22 Fourth St. in downtown San Francisco, the second largest lease completed in the city in 2013.
The space will be used for Demandforce, which Intuit bought in 2012. Demandforce has been slowly growing in the building since 2009, but the new deal represents a doubling in size over the firm’s current footprint.
The building is owned by Jamestown, which recently completed a multi-million dollar renovation.
Demandforce, a division of Intuit’s Small Business segment, will occupy the entire office portion of the building, comprised of approximately 200,000 square feet on floors 3 - 16. The Container Store currently occupies 29,245 square feet of retail space on floors one and two.
The Jamestown renovation “added a youthful vibrancy to the property by creating an environment with desired amenities such as a bike-friendly work space, including an onsite bike room and bike repair station,” according to a press release. The lobby was redone as well, and the new space features a living green wall, water element with digital media, and a fully operational coffee bar and cafe concept by Small Foods, in addition to other amenities. Jamestown will continue with the renovation and repositioning of the building through 2014, with other base-building and service upgrades including adding a dog park behind the building.
“Jamestown is focused on the needs of an evolving workforce and we worked hard to provide amenities that will continue to make Downtown San Francisco one of the hippest places to work,” said Michael Phillips, chief operating officer of Jamestown. “We’re pleased that Intuit has been inspired to continue their commitment to the area and keep San Francisco’s innovation economy going strong.”
Demandforce, a leading online marketing and communication software company acquired by Intuit in 2012, has been a tenant at 22 Fourth since November 2009. The new lease will provide for Intuit’s continued occupancy and expansion. Intuit is expected to begin expanding into the full building beginning in the spring of 2015.
Jamestown acquired 22 Fourth in in 2004 and also owns two neighboring buildings—the mixed-use property at 801 Market, housing Old Navy, Levi’s and the Hotel Palomar, and 799 Market, located directly across the street on the southeast corner of Fourth and Market and home to leading innovation companies including Prism Skylabs and Akamai Technologies, Inc.
The lease is the second biggest lease of the year in San Francisco, trailing only Google’s 360,000 square foot renewal and expansion at Hills Plaza. Twitter is in talks to take about 330,000 square feet at Shorenstein’s One 10th St.
“The interesting thing here is that even though Demandforce was already a tenant in the building, they made the decision to grow in a building with relatively small floors, which has not generally been the preference for tech companies,” said Colin Yasukochi, research director for CBRE. “Either it was all that was available or they have found ways to utilize smaller floor plates, which is also something we saw with Yelp (at 140 New Montgomery.)”
Intuit had been also rumored to be looking at backfilling the space at 235 Second St. thatCBS Interactive will be vacating when it moves over to Foundry Square III.


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