The San Francisco Business times is reporting that Dropbox is slated to release 200,000 square feet of its current 500,000 square feet of office located at 185 Berry Street in China Basin (Dropbox looks to Shed China Basin HQ Space) at $75 a square foot. However, the article suggests that the shedding of space by Dropbox may be more about not wanting to “stay around one location” rather than a sign of a market slowdown.
As other large tech establishments and unicorns (Salesforce, Rocketfuel, Twitter, Lyft, etc.) have either put space up for sublease or plan to shift operations to other locations, market analysts are keeping watch, and some venture capitalists are growing worried (Winder is Coming). But as the Business Times’ article also points out, the availability of sublease space helps other companies who are going the ability to break into the market, or allow “…the likes of Apple to dive into San Francisco in a spaced leased by CNET” In a related article on SF Curbed (Dropbox Sheds), Mary Jo Bowling reports that “real estate pros are still reporting a healthy demand for SF commercial space, albeit with some caution.”
(185 Berry Street)