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January 5th, 2010  

Twitter to double space

The San Francisco Business Times
By J.K. Dineen

January 5th, 2010

Three months after tripling its San Francisco headquarters, social media company Twitter is again expanding its SoMa offices, a 41-month lease worth more than $3 million.

Twitter has grabbed just under 32,000 square feet at 795 Folsom St., taking the entire third floor of the building, which is owned by Westcore Properties. With the new lease Twitter now has 63,222 square feet in the building — enough space to accommodate about 350 employees. Twitter now has 156 employees, with 23 openings, according to its web site.

In October the Business Times reported that the Twitter, a networking site that allows users to communicate in 140-character messages, would move its headquarters from 539 Bryant St., where it leased about 11,000 square feet.

“Twitter is a fast-growing company that needed space that would accommodate its growth efficiently, while maintaining a central San Francisco location,” said Victoria Burkheimer, vice president of acquisitions for Westcore Properties. “The building’s desirable south of Market location, coupled with its high-tech feel including exposed ceilings and creative finishes, were key drawing points for Twitter.”

Twitter was negotiating simultaneously on the sixth and third floors while Westcore scrambled to facilitate moving existing tenants to make both floors available. The deal on the sixth floor is a sublease from social media company Bebo, which was relocated to a smaller space in the building. With the Twitter expansion the building is 100 percent leased, Burkheimer said.

Twitter is one of the hottest venture-backed social media companies, with the number of unique users rocketing from 3 million to 40 million in little more than a year. Twitter has yet to try to create revenue from the traffic through advertising or fees, although already rumors are swirling that it may file for an initial public offering in 2010.

At the time of Twitter’s relocation, San Francisco Economic Development Director Michael Cohen called the company’s brand “extremely powerful.”

“To have the Twitter name associated with the City of San Francisco and all the work we’re trying to do in digital media is something we’re going to be able to leverage off of,” he said.

In addition to Twitter and Bebo, other tenants at 795 Folsom include SBC Global and Regus Business Center.

Twitter was represented by Jenny Haeg and Gary Arabian of the CAC Group. Westcore Properties was represented by Arabian, Haeg, and Angus Scott of the CAC Group.

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