Autodesk Exits One Market Plaza Lease, Consolidates at Landmark

Autodesk is vacating its lease at One Market Plaza, adding to a list of legacy tenants that have departed the iconic trophy waterfront building in recent years. The construction and engineering software company (NASDAQ: ADSK) will not renew its 109,000-square-foot lease across the bottom floors of One Market Plaza that was set to expire this June, and is consolidating its footprint into the complex’s Landmark building, where it currently leases 140,000 square feet. A spokesperson with Autodesk confirmed the news with the Business Times, saying it was meant "to better align with our hybrid approach and the evolving needs of our employees."

"This decision reflects insights showing our teams value spaces that foster collaboration," the spokesperson said. "By modernizing our offices to offer more dedicated areas for intentional gathering, we aim to create dynamic environments that enhance productivity and innovation." The 1.6 million-square-foot, two-tower complex has seen a handful of high-profile tenants shed space in recent years, like Alphabet Inc.'s Google, which vacated its 320,000-squarefoot space there last year and similarly retained a presence at the Landmark building, an 11story historic building within the complex that is under different ownership.

Visa also exited One Market's main building after relocating to Mission Rock, putting its entire 162,000-squarefoot headquarters there up for sublease in 2024. One Market is owned by Rithm Capital Corp., as part of a joint venture with Blackstone. It is the parent company to Elecor Properties, which recently rebranded from Paramount Group. The Landmark building at One Market, an 11-story 422,426-square-foot building, is under separate ownership by American Assets Trust, a San Diego-based REIT.

Autodesk’s departure arrives amid a looming maturity for the debt backed by the complex. Its owners exercised a yearlong extension of the $850 million loan secured by the building earlier this year, which gives them more time to hash out a long-term solution such as refinancing with new debt. The maturity extension was part of a larger deal completed in 2024 where they paid down a then-$975 million loan by $125 million in exchange for a three-year extension of the debt’s February 2024 maturity.

American Assets Trust could not be reached for comment. Elecor declined to comment. One Market, excluding the Landmark building, was 65.4% leased at the end of the first quarter, a source told the Business Times. The building’s availability rate of 34.6% will increase after Autodesk's lease expires in June, though sources told the Business Times that could be short-lived. Two sources familiar with the matter said there has been notable leasing interest at One Market totaling more than 100,000 square feet from multiple tenants.

While those deals are still pending and have not yet been signed, they could help to offset the space Autodesk is vacating if finalized. There has also been a handful of new lease deals there in recent months, with law firm Davis Polk & Wardwell LLP leasing 44,000 square feet in Spear Tower, and Simpson Thatcher taking 32,000 square feet of Google's old space there last year. Colliers also took 18,000 square feet in Steuart Tower.

In April, Rithm unveiled a planned multimillion dollar makeover to redo One Market's ground floor and add in a conference center, fitness facility and atrium bar, as well as a bar on the seventh floor, an executive lounge and rooftop deck. The $250 million amenity campaign will upgrade four properties in Elecor’s portfolio, including One Front St. in San Francisco, and two New York office properties.

Autodesk in 2023 listed a 73,000-square-foot chunk of its space at One Market for sublease, just one year after it had reassigned its headquarters there from San Rafael, where the company was headquartered for three decades. It had leased 117,000 square feet at 300 Montgomery, investing heavily in the building with San Francisco-themed floors, an ecofriendly design and collaborative workspaces and amenities. It ultimately pulled the plug there in 2022, putting that space up for sublease.

The company in January announced it would lay off 1,000 employees, 7% of its global workforce, after slashing 1,350 jobs in February last year. CEO Andrew Anagnost said at the time the cuts would "not become an annual process." Autodesk reported in January filings with the Securities and Exchange Commission it occupied 140,000 square feet of office space in San Francisco. It has its quarterly earnings call on May 28.