Real Estate

Silicon Valley Bank Relocates San Francisco Office

Silicon Valley Bank, a division of First Citizens Bank, has opened its new downtown San Francisco office at 222 Second St. The financial services provider will occupy multiple floors of upgraded space in the building.

According to CommercialEdge data, Tishman Speyer completed the full acquisition of 222 Second St. in 2017, paying $542 million for a remaining 80 percent interest in the asset. Built in 2015, the property totals 452,418 square feet.

Amenities at 222 Second St. include 6,000 square feet of event space, an outdoor terrace and collaboration areas. The property is one block away from SVB’s previous office space at 505 Howard St.

LinkedIn also leases space at 222 Second St. Located on an approximately 0.6-acre lot, the 26-story office tower is LEED Platinum-certified.

The high-rise is within walking distance of multiple dining, retail and entertainment options. Interstate 60, I-280 and Highway 101 offer easy access to the larger San Francisco and northern California areas. The San Francisco International Airport is less than 14 miles from the building.

San Francisco’s office market performance

As of January, San Francisco has had an extremely limited office sales activity. The slow start to the year is on par with the deal volume seen throughout 2023, which lagged behind other major gateway metros.

Along with the low transaction activity, the city’s office buildings continued to carry higher vacancy rates than the national average. In the first month of 2024, the office vacancy in San Francisco was 23.8 percent, while the U.S. rate stood at 17.8 percent, according to CommercialEdge data. However, the figure marked a decrease from the metro’s highest vacancy rate of 24.2 percent, recorded in November 2023.

Earlier this month, Shorenstein Properties also landed a new tenant at its downtown San Francisco office building at 45 Fremont St. A law firm signed a 19,137-square-foot lease agreement. The asset is less than a mile from SVB’s new office.

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