SAN FRANCISCO — X, the social media company formerly known as Twitter, will close its San Francisco headquarters on Friday, September 13th. This announcement comes as part of a strategic move by the company, now owned by Elon Musk, to relocate its operations out of the city.
The headquarters, located at 1301-1363 Market Street in the mid-Market neighborhood of San Francisco, has served as the global hub for X for many years. The decision to vacate the building follows an internal memo circulated earlier this month. The company is shifting its focus to other locations, including a future headquarters in Austin, Texas.
Details of the Move
Employees currently based at the San Francisco headquarters will be relocated to existing offices in San Jose. This relocation aligns with Musk’s broader strategy to consolidate operations and reduce costs. The move is part of a larger trend of tech companies reevaluating their presence in traditional hubs like San Francisco.
About the San Francisco Building
The building at 1301-1363 Market Street is a notable landmark with a rich history:
Year Built: 1937
Renovation: The building underwent significant renovations in January 2013 to modernize its facilities and accommodate growing tech companies.
Office Space Rent: The estimated rental cost for office space in the building ranges from $50 to $61 per square foot (full service), making it one of the more premium office spaces in the area.
Elevators: The building is equipped with four elevators servicing floors 1 through 11.
Accessibility and Amenities
The building is highly accessible, boasting excellent walk and transit scores:
Walk Score®: 99, categorized as a "Walker's Paradise," indicating that daily errands and activities can be easily accomplished on foot.
Transit Score®: 100, rated as a "Rider's Paradise," highlighting the building’s prime location for public transportation access.
Parking Facilities
Parking Ratio: 0.27 spaces per 1,000 square feet of office space.
Parking Type: The building offers 200 covered parking spaces for tenants and visitors.
Insights from the Stacking Plan
An analysis of the stacking plan for X's San Francisco office building reveals the extensive footprint the company has had in the city. The company occupies multiple floors, covering substantial square footage:
5th to 8th Floors: Each floor comprises 78,792 square feet.
9th Floor: Covers 57,366 square feet.
10th Floor: Occupies 44,954 square feet.
11th Floor: Comprises 40,305 square feet.
All leases are set to expire in April 2028, indicating that the company had initially planned for a long-term presence in the city.
Future Implications
The closure of the San Francisco headquarters represents a significant shift for X, reflecting broader changes in the tech industry and corporate real estate strategies. The move to Austin and consolidation in San Jose suggest a trend of decentralization, with companies exploring more flexible and cost-effective ways of operating.
This decision may also impact the local San Francisco economy and could signal a shift in how tech companies view their need for large, centralized office spaces. As X prepares to shutter its San Francisco headquarters, it highlights not just a physical relocation but a transformative shift in the company’s operational strategy and the future of work in the tech industry.
September, 2, 2024, Michal Mohelsky, JD,
Sources: Bloomberg, Kron, CoStar, EagleView
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