Starting in April 2017, Salesforce (CRM -1.4%) will spend $560M over 15.5 years to lease 714K sq. feet in a San Francisco office tower that will be the city's tallest building following its completion, and $130M on leasehold improvements. Net operating expenses related to the lease are expected to total $305M. (8-K)
As part of the deal, which covers over half the building's office space and represents a big expansion of Salesforce's existing S.F. HQ, the building will be named Salesforce Tower.
Bloomberg estimates Salesforce is paying a steep $83/sq. foot, or more than S.F.'s peak average office rent of $80/sq. foot (set during the Dot.com bubble).