Pinterest terminated a massive 490,000-square-foot lease at San Francisco’s unbuilt 88 Bluxome project, citing a shift toward more remote work amid the coronavirus pandemic.
The company will instead continue leasing four existing San Francisco offices, including 651 Brannan St., and pay a one-time fee of $89.5 million to cancel the Bluxome lease. The cancellation is the strongest sign yet of how the coronavirus is reducing the tech sector’s once-voracious appetite for office space.
“As we analyze how our workplace will change in a post-COVID world, we are specifically rethinking where future employees could be based,” said Todd Morgenfeld, Pinterest’s chief financial officer, in a statement. “A more distributed workforce will give us the opportunity to hire people from a wider range of backgrounds and experiences.”