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Uber Looking to Sublease 700,000 feet of Office

By Uber Subleasing over 700,000 Square Feet of Office Space

Uber's Plans for a Global HQ

The high demand for office space in San Francisco coupled with a short supply of buildings has raised prices to record breaking levels as of recent years. News however of Uber subleasing over 700,000 square of office space across four buildings in San Francisco has just been made public. This release of hundreds of thousands of feet of office space may be the inventory many businesses are looking for. 

In a separate article Stripe had announced its intent to pre-lease over 400,000 square feet at Kilroy Realty's Oyster Point development from lack of available office product in San Francisco. With the news of Uber's sublease perhaps Stripe will come back to the city and be a contender to take the majority of the subleases. Even with this large sublease hitting the market we will still be in short supply as other developments in line for approval have been pre-leased as well. As much as new construction is something to get excited about as more inventory will be coming to the market it is bothersome to think that a lot of these new developments have already been leased. 

One other factor to consider in all of this is as much as there is 700,000 square feet of space coming to the market Uber isn't leaving town. Uber has plans to move it's global headquarters to a new building in San Francisco's Mission Bay. Uber's move to Mission Bay was driven by the lack of space the city's already tight market. With all the new developments in Mission Bay, Uber hopes transform four buildings into a new campus. with muni lines, highway access, and ferry access the move was to help accommodate it's growing workforce and make their commute to work less stressful. 

Nestled right next to the new Chase Arena, Uber's move has been one of many big names to enter Mission Bay these past few years. Aside from the Warriors moving to Mission Bay, Dropbox leased 736,000 square feet at 1800 Owens (The Exchange), a record breaking lease for the largest in city history back in 2017. As we can clearly see even with sublases like Uber's coming to the market there will be a few or one bi tech giant who snatches up the space leaving the market as saturated as it was before.