一个市场Plaza, home of Google, Visa and Autodesk, is one of San Francisco’s most valuable buildings. Visa is vacating its big downtown headquarters for another site in the city.
Roland Li/The ChroniclePayments giant Visa has listed its entire 190,000-square-foot headquarters for sublease in downtown San Francisco — but unlike most pandemic era office closures, it isn’t because of remote work.
It comes as part of Visa’s plan, which dates to 2019, to move its headquarters from One Market Plaza, where it listed space, to anunder-construction, 13-story office towerat the Mission Rock project. Visa’s new headquarters is set to open early next year and will span 300,000 square feet, more than 50% more space compared to its current office, the company confirmed to The Chronicle. As of 2019, 650 Visa workers were based at One Market Plaza, while the Mission Rock tower is expected to accommodate 1,500 people.
Though the five-floor sublease listing wasn’t fueled by cost-cutting or remote work, Visa adds another significant hole to San Francisco’s office vacancy crisis. By itself, the listing tacks on 0.22 percentage points to the city’s vacancy rate, which hit arecord high 29.4%at the end of March, according to real estate brokerage CBRE.
Empty office buildings couldslam the city’s budget,with estimated property tax losses of nearly $200 million per year by 2028 in a worst-case scenario projected by city officials.
Visa’s sublease listing is one of the largest in the city, and not the first one at One Market Plaza. Software company Autodesk listed 73,000 square feet for sublease there in January, citing the rise of flexible work schedules,San Francisco Business Times reported.
一个市场Plaza, located at the eastern terminus of Market Street and next to the Embarcadero BART Station, is one of the biggest office properties in the city with 1.6 million square feet of offices across two towers — 200,000 square feet larger than Salesforce Tower.
New York-based landlord Paramount Group owns the property with private equity giant Blackstone andsaid一个市场Plaza’s office space was 96.6% leased at the end of last year. The building generates $151.7 million in annual office rent and $2.8 million in annual retail and restaurant rent, according to Paramount filings.
Visa and Autodesk’s sublease listings increase the building’s vacancy rate by 16.4%, though the companies must continue to pay rent unless subtenants are found. Google also leases 339,833 square feet in the property.
Visa’s listing is competing with numerous other office vacancies just a few blocks away in the Transbay area. Metalisted 435,000 square feet for subleaseat 181 Fremont in January, and Salesforce listed125,000 square feet for subleaseat its namesake tower last month and another104,000 square feet for subleaseat 350 Mission St. this month.
今年1月,签证列出了64000平方英尺的办公室做事e in Palo Alto for sublease, also related to its Mission Rock consolidation. The company also has a major office in Foster City, where it previously had its headquarters.
This week, Visa reported fiscal second quarter revenue of nearly $8 billion, up 11% from the prior year and beating analysts’ forecasts. Payment volume grew by 10% compared to the prior year.
The company’s $480 billion market capitalization ranks it among the top dozen U.S. companies. Visa had 26,500 employees as of September 2022, up from 21,500 employees from a year earlier.
Though remote work has been the overwhelming reason for the majority of sublease listings across San Francisco, Visa’s move has parallels to another major relocation: Uber moved to anew Mission Bay headquartersand sought to sublease the office space in four older offices around Market Streetstarting in 2019.
乳房和签证的行动涉及体育团队:Uber partnered with the Warriors on the construction of its headquarters, which is next to Chase Center and a few blocks from Visa’s future location. Visa’s landlords at Mission Rock are the Giants and developer Tishman Speyer, which are alsobuilding housingas part of the waterfront project near Oracle Park.
At its formerMid-Market headquarters at 1455 Market St.,Uber has had no luck finding subtenants in the last 3½ years, and Block, Reddit and WeWork have also left or plan to leave the building.
Reach Roland Li: roland.li@sfchronicle.com; Twitter: @rolandlisf
