Does Figma's 98K SF Union Square Lease Renewal Signal SF's Post-Pandemic Revival?

In Union Square, where occupancy rates have been challenged by the pandemic, Figma, a product development platform maker, has reaffirmed its dedication to its 97.6K SF office space. Figma, along with its 1,400 employees, will remain at the Phelan Building at 760 Market St. This decision comes amidst a series of renewals happening within San Francisco's tech sector, countering the notable departures of companies like Meta and Salesforce.

Resurgence in San Francisco's Office Market

Despite four years of difficulty, San Francisco's office market is exhibiting signs of recovery, indicating a gradual return to pre-pandemic conditions. Many observers believe that property values have reached their lowest point, signaling a potential upward trend.

Figma's Prior Commitment and Growth

Figma had shown a prior interest in retaining its office space during the pandemic, having moved into the Phelan Building in May 2021. The company emphasizes the importance of its office environment, designed to reflect its values and foster creativity and collaboration. Additionally, Figma is expanding its physical presence in various global cities.

Property Appeal and Tech Companies' Presence

The lease renewal at the Phelan Building is seen as a testament to the property's attractiveness and strategic location, amidst competitive landlord pursuits. It also highlights a broader trend of tech firms consolidating their presence in San Francisco. According to CBRE, office vacancy rates in the city's central business districts stood at 33.9% in the first quarter.