April 22 (Bloomberg) -- LinkedIn Corp. agreed to fully lease a San Francisco office tower that’s being built by Tishman Speyer Properties LP in the South of Market area as growing technology firms boost rents citywide.
The professional social-networking company will occupy the building at 222 Second St. on a lease that includes 450,000 square feet (42,000 square meters) of offices, San Francisco Mayor Edwin Lee said in a statement today. The tower can accommodate 2,500 workers and has 8,500 square feet of public space including retail, according to the statement.
“LinkedIn’s decision to grow in the innovation capital of the world demonstrates, once again, investor confidence in our city,” Lee said.
LinkedIn’s agreement is the latest tower deal by a technology firm in the city following disclosure of high-rise leases by Microsoft Corp. and Salesforce.com Inc. San Francisco rents rose 6.8 percent in the first quarter from a year earlier to $57.21 a square foot on average, and vacancies were little changed at 11.3 percent, Jones Lang LaSalle Inc. said. Rents have jumped 70 percent since 2010, according to the brokerage.
“With this new building, LinkedIn is committed to expanding in San Francisco, giving us even more access to some of the most talented professionals in the world across a variety of functions, including technology, sales and operations,” Jim Morgensen, the company’s head of workplace, said in the statement.
The lease was reported last week by Bisnow.com, a real estate news website.
The Tishman Speyer tower, under way at Second and Howard streets, is scheduled to be completed in 2016, according to the New York-based developer. The high-rise is being built to attain the second-highest rank for sustainable design, measured by the U.S. Green Building Council.
LinkedIn has more than tripled since its 2011 initial public offering, with the shares little changed in the past year. The company is searching for office space in Dublin as it seeks to add mobile features and make acquisitions outside the U.S., two people with knowledge of the matter said on April 14.
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