I
nstacart has reaffirmed its commitment to San Francisco, signing a nine-year lease for 60,000 square feet at 300 Mission Street in the Financial District. The company's new lease runs through 2034 and provides long-term financial stability for building owner Paramount Group. This move comes after Instacart expanded to 107,000 square feet in 2019 but didn't fully occupy the space.
The grocery delivery platform has been a significant tenant at 300 Mission Street since 2015, occupying two floors of the 24-story building. Over 750 of its 3,265 employees work from this location. Instacart's lease renewal is part of a trend among tech companies in San Francisco recommitting to their existing offices.
Paramount Group has reason to celebrate, having paid down a $273 million loan backed by the building in 2023 to secure an extension of the debt's maturity. The company acquired the building for $395 million in 2014 and currently has an occupancy rate of 81.4 percent, slightly better than San Francisco's first-quarter office vacancy rate of 35.8 percent.
This lease renewal is a significant vote of confidence from Instacart in its San Francisco headquarters, with CEO Dani Dudeck stating that the city will remain a key part of the company's future.
