Exclusive: Pokémon Go maker signs lease at San Francisco's Ferry Building

By Roland Li  –  Reporter, San Francisco Business Times Niantic Inc., maker of the hit mobile game Pokémon Go, leased 17,500 square feet at San Francisco's iconic Ferry Building, a source familiar with the deal said. The company is taking part of the space formerly occupied by law firm Coblentz Patch Duffy & Bass LLP. Niantic's rent isn't clear. The Ferry Building has some of San Francisco's most expensive office space, with prices up to $100 per square foot. The deal is evidence of continued demand for premium office space from fast-growing tech companies, which have dominated the city's real estate market in recent years. The Ferry Building has about 55,000 square feet of vacant office space, out of a total of 175,000 square feet of office. It also includes 65,000 square feet of retail. The Port of San Francisco owns the Ferry Building. The Blackstone Group (NYSE: BX)'s Equity Office division has a long-term ground lease with around 50 years remaining. Blackstone plans to sell control of the building's lease. Two sources familiar with the property said sale efforts are ramping up following Niantic's lease, and pricing could exceed $300 million, or $1,250 per square foot. The 1889 building was comprehensively renovated and reopened in 2003. It is now one of the city's biggest tourist attractions with its indoor food market. It is also a commuter hub with ferry service to Marin County, Vallejo and the East Bay. Ferry service is being expanded. Niantic, previously a division of Alphabet Inc.'s Google Inc. (NASDAQ: GOOG), became independent in October 2015. A year later, it released Pokémon Go, which allows players to catch virtual monsters on their phones, with game zones corresponding to the player's real-world location. The game was downloaded over 750 million times worldwide in its first year, Niantic said in June. It isn't clear if Niantic will keep its current office, which is in South of Market. A Niantic spokesman declined to comment. Equity Office didn't immediately respond to requests for comment.