Dumping

Uber will lease out entire office building in San Francisco

Tessa McLe

Rumors that Uber was abandoning one of its new office buildings in Mission Bay have been circulating since 2021. This week, CoStar News finally confirmed it was true and that the entire building at 1725 Third Street is for lease. 

This will slash Uber’s splashy new San Francisco headquarters by about a third, releasing nearly 300,000 square feet onto the commercial real estate market.

“We remain committed to our hybrid work approach which emphasizes in-person collaboration and continue to welcome employees to our Mission Bay campus,” an Uber spokesperson told SFGATE.

Tech giants across the Bay Area have been rapidly shedding office space in the wake moving to hybrid work environments and recent mass layoffs. In March, Pinterest announced the closure of two offices, Reddit slashed the amount of space it occupies almost in half and Meta eliminated 435,000 square feet. Meanwhile, Google could pay more than of $500 million as it seeks to shrink its office footprint.

The vacancy rate in San Francisco in the first quarter of 2023 climbed to 29.4%, up from 27.6% in the fourth quarter of 2022, and is poised to rise this quarter, according to commercial real estate firm CBRE.