Salesforce.com to spend nearly $700 million to expand headquarters

The move underscores the cloud software vendor's aggressive growth plans

Fast-growing cloud software vendor Salesforce.com is planning to expand its San Francisco headquarters by more than 700,000 square feet, taking a 15.5-year lease on a 61-story office building under construction.

Salesforce.com will lease more than half of the building, which will be located at 415 Mission Street, and will call its portion the Salesforce Tower.

Its deal with developer Boston Properties calls for Salesforce.com to make US$560 million in lease payments over the 15.5-year term, beginning in the first quarter of Salesforce.com's fiscal 2018, according to a filing with the U.S. Securities and Exchange Commission. The vendor also expects to spend about $130 million on leasehold improvements to the space, the filing adds.

In total, Salesforce.com's downtown San Francisco presence will encompass 2 million square feet by 2017, according to Friday's announcement.

Salesforce.com has been hiring aggressively in recent years, as well as adding staff via a series of acquisitions, as it heads toward $5 billion in annual revenue. It had 13,300 workers as of Jan. 31, compared to 9,800 a year earlier, which is a 36 percent jump. Salesforce.com plans to add more than 1,000 employees in the Bay Area alone this year, it said Friday.

Despite the healthy sum Salesforce.com will pay to lease the tower space, the move could be seen as a conservative one in contrast with its previous plans to build major new headquarters in San Francisco. In 2010, it bought up 14 acres of undeveloped land there for the project but ultimately put it on hold.

The land was worth more than $320 million as of Jan. 31, according to Salesforce.com's latest annual report. In the report, Salesforce.com said it was evaluating its needs for office space and that selling the land was one option on the table.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesInternet-based applications and servicesCustomer Relationship ManagementapplicationsSalesforce.comsoftwareSEC Filingscloud computinginvestmentsinternet

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?