Pinterest, a social-sharing site popular for pinning recipes, clothing, home inspiration, and more, has canceled its office lease in San Francisco.
The company is paying $89.5 million to terminate its lease located on 88 Bluxome, adjacent to the 4th and King Caltrain station. The 490,000 square foot office is in a high rise complex to be constructed near Pinterest’s existing SF headquarters. When complete, the new development will have ground-floor retail shops, 12 indoor tennis courts, multiple swimming pools, and two office high-rises. Pinterest will keep its current city offices downtown.
“Pinterest signed the lease last year with Alexandria Real Estate Equities Inc, Bloomberg reports. As a result of the termination, Pinterest will no longer be subject to future minimum lease payments of approximately $440 million as disclosed in prior filings,” reports KRON4.
“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, CFO and Head of Business Operations of Pinterest. “A more distributed workforce will give us the opportunity to hire people from a wider range of backgrounds and experiences.”
A Stanford Institute for Economic Policy Research report recently found that 42 percent of the U.S. labor force now works remotely. The Sacramento Bee explained the reports show that because of COVID-19, about 33 percent of the workforce isn’t working and that the “remaining 26 percent – mostly essential service workers – are working on their business premises.”
“So, by sheer numbers, the U.S. is a working-from-home economy,” said Nicholas Bloom, a Stanford University economist.
Pinterest may not be the only company to back out of Bay Area offices; other Bay Area tech giants, such as Apple, Facebook, and Twitter, have said work-from-home policies will continue even after the coronavirus pandemic ends.
Nikki Medoro addressed the company’s decision on The Morning Show with Nikki Medoro. Listen to her discuss the current situation below.