Ubisoft, one of the world’s largest video game developers, has renewed the lease for its San Francisco headquarters located South of Market. The company signed a seven-year deal for 42,000 square feet at 625 Third Street, where it has been housed since 1996. Ubisoft will expand to a total of 62,000 square feet in San Francisco by the end of 2010, to accommodate an increase in employee growth.
Matt Hart, Steve Barker, and Julia Wilhelm, of Studley’s San Francisco office represented Ubisoft in the transaction.
“Ubisoft seized the down market to solidify its real estate strategy with a landlord that had the ability to focus on long-term value. There’s a lot of opportunity in the real estate and labor markets here, and we’re happy to see larger employers, like Ubisoft, recommit to San Francisco,” said Hart. “The building’s ownership, Capital & Counties, provided significant structural and systems upgrades to meet the robust demands of a growing technology company. Plus, the property’s focus on sustainability and provision of onsite parking create an employee-friendly workplace.”
JD Lumpkin and Bob Kraynak of Cushman & Wakefield represented Capital & Counties in the transaction.
San Francisco’s South of Market (SoMa) submarket has shown some life in an otherwise lackluster leasing market, with over 300,000 square feet or 4 percent of the submarket’s gross inventory leased to date in 2010. SoMa currently has a 16 percent availability rate with average asking rents around $30 per square foot, per year. Other significant SoMa leases signed in the first quarter include Greenberg Traurig LLP’s sublease of 28,788 square feet at 153 Townsend Street, UStream’s renewal of 24,554 square feet at 475 Brannan Street, and SFMTA’s lease of 23,125 square feet at 651 Brannan Street.