Committee approves amended lease terms and requests report back for Digital Services at 1275 Mission Street

The Budget and Finance Committee on Jan. 29 considered a proposed lease of approximately 8,750 square feet at 1275 Mission Street for San Francisco Digital Services and Data SF and moved the item to the Board with an amendment requiring a report back before the lease options are exercised.

Claudia Gorham, deputy managing director of the Real Estate Division, explained the city would occupy the entire building to consolidate Digital Services and Data SF. The proposal calls for a six-year initial term with two 5-year options, initial monthly base rent of about $48,125 (roughly $66 per square foot) with 3% annual adjustments, and a $5,000 tenant improvement allowance. Gorham said the landlord offered to rent onsite furniture and equipment valued at over $100,000 for $25,000 for the term, saving the city purchase costs and time. Real estate staff said they would return with more analysis on option exercise and other concerns, and the Budget Analyst Office requested a report back from the director prior to option extension.

Why it matters: the move consolidates a growing digital team (from roughly 34 to 46 full-time positions) into a safer, more suitable workspace and avoids losing staff due to cramped existing space.

Quotes: "Digital services currently has 29 full time employee positions and is expanding to 41," said the Real Estate representative. "This savings, along with the tenant improvement allowance, equals about 1 month's rent," the real estate presentation stated, reflecting the furniture and TI arrangements.

Ending: committee approved an amendment requesting a report back before option extensions and forwarded the lease to the Board as amended.