Salesforce has expanded its presence at 3 Bryant Park, also known as Salesforce Tower, in Manhattan. The company agreed to take an additional 71,000 square feet in the building owned by Ivanhoé Cambridge, according to CoStar. With this expansion and renewal, Salesforce now occupies 311,000 square feet of the 1.2-million-square-foot property at 1095 Sixth Avenue.
An executive from Salesforce stated: “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.”
While financial terms of the lease were not disclosed, the agreement extends Salesforce’s occupancy through May 2029. The new space will include areas dedicated to employee training, collaboration and hybrid work, as well as facilities for a customer-focused initiative.
Salesforce’s office strategy has shifted over recent years amid changes in workplace trends. In San Francisco last year, the company reduced its footprint by nearly half—leasing 900,000 square feet compared to the 1.6 million square feet it previously occupied.
The role of artificial intelligence has influenced these moves. Despite job cuts linked to AI adoption, demand for physical office space among tech companies has grown. Industry data from CBRE indicates that tech sector leasing activity increased by 21 percent year-over-year in the first quarter of this year and made up about one-sixth of total U.S. office leasing volume (https://www.cbre.com/insights/briefs/us-office-occupier-sentiment-survey-march-2024).
Earlier this year, Ivanhoé Cambridge secured a $1.13 billion refinancing for the Bryant Park tower through a CMBS loan provided by Wells Fargo, Bank of America and Bank of Montreal (https://commercialobserver.com/2024/01/wells-fargo-bofa-bmo-refi-ivanhoe-cambridge-3-bryant-park-manhattan/). Ivanhoé Cambridge acquired the property in 2015 for $2.2 billion—the second most expensive office purchase in U.S. history at that time (https://therealdeal.com/new-york/2015/11/19/canadian-investor-buys-3-bryant-park-for-record-setting-2b-plus/). The building was reported to be 97 percent leased during its recent refinancing process.
