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endesk has abandoned its headquarters in San Francisco's Mid-Market, a neighborhood experiencing a significant tech exodus. The customer service software firm is subleasing over 40,000 square feet of office space at the 181 Fremont Street tower in SoMa's Transbay District from Meta Platforms, parent company of Facebook. This move comes after Meta put the vacant building up for sublease earlier this year.

    The departure of Zendesk and other tech firms has left nearly half of Mid-Market's offices available for rent, with a total office availability rate of 48.6% in the third quarter. The neighborhood is also seeing a decline in its reputation as a hub for tech companies, with many tenants moving to other areas.

    Fernando Pujals, deputy director of the Mid-Market Business Association, aims to rebrand the area as a center for arts and culture rather than offices. Meanwhile, office vacancy rates in San Francisco have reached a record high of 37.3%, according to CBRE. Other notable tech firms that have left Mid-Market include Spotify, Uber, and Block, which has announced it will not renew its lease.

    The sale of the former Zendesk building at 989 Market Street for $13.5 million is another indicator of the changing office market in San Francisco. The deal represents a significant discount from the original purchase price of $61.3 million just a decade ago.