Social media giants Facebook and TikTok are expected to expand their footprint in Silicon Valley to around 1 million square feet combined, indicating that tenants want to commit to office space according to Boston Properties CEO Owen Thomas.
Facebook is seeking to add 700,000 square feet, while TikTok’s parent company ByteDance would add 300,000 square feet in the region.
“These examples support our repeatedly stated position that tenants are committed to the office as their location of choice to collaborate, innovate and train, all critical for their long-term success,” said Thomas during a Q3 conference call.
These expansions provide an optimistic sign that the region’s office market is finally starting to rebound after struggling to recover from pandemic-related losses.
For Boston Properties, San Francisco’s largest landlord, the company’s Bay Area properties were around 18% occupied during the last quarter, which is the lowest in the company’s portfolio.
According to President Doug Linde, the lag in recovery for San Francisco may be due to continued remote working and mask mandates.