SAN FRANCISCO (KRON) – Pinterest, Inc. has terminated its lease for a future office space that was to be built near its current headquarters campus in San Francisco amid the ongoing coronavirus pandemic.
In a statement, the company said it is paying an $89.5 million termination fee to terminate its lease for 490,000 square feet of space, and would instead continue its lease to its current buildings downtown.
“As we analyze how our workplace will change in a post-COVID world, we are specifically rethinking where future employees could be based,” said Todd Morgenfeld, CFO and Head of Business Operations of Pinterest. “A more distributed workforce will give us the opportunity to hire people from a wider range of backgrounds and experiences.”
Pinterest signed the lease last year with Alexandria Real Estate Equities Inc, Bloomberg reports.
As a result of the termination, Pinterest will no longer be subject to future minimum lease payments of approximately $440 million as disclosed in prior filings.