Airbnb may want to shed more offices in San Francisco.
The short-term rental platform is shopping for between 200,000 and 250,000 square feet of offices to potentially replace its 280,000-square-foot headquarters at 888 Brannan Street, the San Francisco Business Times reported, citing unidentified sources.
The potential move follows the consolidation of the company’s five-building campus in Showplace Square to one building late last year after committing to a fully remote workplace.
Airbnb, which confirmed its new requirement, suggested it wouldn’t need new offices until the end of 2026, when its lease at the four-story building ends.
“Our current lease at 888 Brannan is more than three years from expiration and we have not made a decision on possible relocation,” an Airbnb spokesperson said. “We are simply exploring options, given the lead time needed for this decision to be made.”
At Showplace Square, Airbnb now pays an annual base rental rate of $63.16, which will rise to $69.02 in 2026. In recent years, Airbnb has listed more than 600,000 square feet surrounding 888 Brannan for sublease.
CBRE is helping the tech firm hunt for the new offices. The space search has raised some eyebrows, according to the Business Times.
One market observer who requested anonymity described it as “more of an exercise than anything meaningful,” adding that in terms of its office needs, the company is “trying to figure it out” but is “not exiting 888 Brannan.”
Airbnb is likely “trying to leverage a good deal” at 888 Brannan given the company’s upcoming lease expiration, another source told the Business Times.
When Airbnb leased offices at 888 Brannan in 2012, it initially committed to just under 11 years, with two, five-year options to renew its lease with owner TIAA Global Real Estate, based in New York.
A company spokesperson confirmed Monday that the lease was amended to extend that initial term through the end of 2026.
Airbnb last year gave its employees the freedom to live and work from anywhere in the world.
Company operations such as recruiting, however, may be easier with a more centralized location, according to Tony Zucker, executive vice president at Dunhill Partners West.
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“By being in the heart of the city, the north or south Financial District, this may afford Airbnb the opportunity to not only retain and recruit, but also encourage employees to return to the office,” Zucker told the Business Times. “They are probably exploring the market and just sticking their toe in the water to see if any landlord will really step up and give them an amazing deal for down the road.”
This summer may be a tough one for Airbnb. The vacation rental platform saw a close to 50 percent decline in revenues per listing last spring in some cities, compared to the same period the previous year, according to one source disputed by the firm.
— Dana Bartholomew