Salesforce has expanded its presence at 3 Bryant Park in Manhattan by signing for an additional 71,000 square feet of office space. The move brings the tech company’s total lease at the Ivanhoé Cambridge-owned property, also known as Salesforce Tower, to 311,000 square feet within the 1.2-million-square-foot building at 1095 Sixth Avenue.
A Salesforce executive commented on the decision: “Our vision for real estate is to create the right spaces and experiences that accelerate growth and empower humans, agents and robots to work alongside one another.”
The terms of the new lease have not been made public. The company’s commitment now extends through May 2029. The expansion will add facilities including an employee training center, areas designed for collaboration and hybrid work, as well as dedicated space for a customer-focused initiative.
In recent years, Salesforce has adjusted its office footprint in response to changes in workplace trends. In San Francisco last year, it reduced its leased space from 1.6 million square feet to 900,000 square feet.
Despite workforce reductions attributed to artificial intelligence advances, demand for physical office space among tech companies is rising. According to CBRE data, leasing by technology firms increased by 21 percent year-over-year in the first quarter of this year and represented roughly one-sixth of total U.S. office leasing volume (https://www.cbre.com/insights/books/us-office-occupier-sentiment-survey-june-2024).
Ivanhoé Cambridge secured a $1.13 billion refinancing for the tower earlier this year through a CMBS loan provided by Wells Fargo, Bank of America and Bank of Montreal (https://commercialobserver.com/2024/01/wells-fargo-bofa-bmo-refinance-ivanhoe-cambridge-mets-3-bryant-park-cmbs/). The firm purchased the property in 2015 for $2.2 billion—a deal that ranked as the second most expensive office acquisition in U.S. history at that time (https://therealdeal.com/new-york/2015/01/15/canadian-firm-completes-record-2b-purchase-of-metlife-building/). At the time of refinancing, occupancy at the tower stood at 97 percent.
