Hudson Pacific Properties, Inc. (the “Company”) (NYSE: HPP) today announced it has signed a new lease at its 1455 Market Street property to Square, Inc., a leading electronic payment service provider that enables credit card payments through mobile devices. This new lease encompasses 246,078 square feet of initial occupancy, and includes an expansion option for an additional 81,354 square feet, for a combined 327,432 square feet of occupancy.
“Square is one of the San Francisco Bay Area’s most innovative and dynamic companies and is an excellent addition to our roster of strong tenants at 1455 Market Street in San Francisco,” said Victor J. Coleman, Chairman and Chief Executive Officer of Hudson Pacific Properties, Inc. “This new lease represents a long term commitment from a leading technology company at starting rents above our underwritten and expiring rents for this same space. Our success in attracting exceptional tenants like Square to 1455 Market continues to unlock this asset’s value potential.”
With respect to the 246,078 square feet of initial occupancy, 181,805 square feet is scheduled for commencement in early 2013, 15,741 square feet is scheduled for commencement in July, 2013, with the remaining 48,532 square feet scheduled for commencement in early 2014. Square has the option to take an additional 81,354 square feet with a scheduled commencement in early 2014, which upon exercise, would result in a combined 327,432 square foot lease. The 246,078 square feet backfills 206,760 square feet of space occupied by the project’s largest tenant and takes an additional 39,318 square feet of currently vacant space. The exercise of the 81,354 square foot option would result in the backfill of a total of 288,114 square feet of space currently occupied by the project’s largest tenant.
1455 Market Street is a 1,012,012 square foot, 22-story, Class-A office building situated on 3.01 acres and located in the dynamic Mid-Market submarket of San Francisco, which is fast becoming one of San Francisco’s newest technology and business hubs. 1455 Market is in close proximity to both Twitter’s new corporate headquarters and to some of San Francisco’s largest government and cultural institutions.