Another press hit for our San Francisco market! High-five to Blake Toline, our research analyst for the SF/Bay Area, for bringing this deal to our attention. Esurance expands in SF -- read about it below.
Nov 19, 2013, 2:29pm PST UPDATED: Nov 19, 2013, 5:01pm PST
Spencer A BrownEsurance is growing again in San Francisco.
A month after the company said it would open a 700-person customer service center in Ogden, Utah, the group has signed a deal to expand its San Francisco headquarters by 73 percent, according to Compstak. Esurance has inked a 91,000 square foot lease at 650 Davis St., part of the Golden Gateway Commons complex that includes a Safeway and Starbucks.
The deal comes eight years after Esurance, which is owned by Allstate, moved into 50,000 square feet in the building. The company then subleased an extra 12,000 square feet in 2012.
The new lease, a seven-year deal, includes a renewal of the 2006 deal, according to Compstak.
The effective rent is approximately $50 a square foot and includes 3 percent annual increases.
Esurance has added 300 employees in San Francisco since October of 2011, doubling its headcount. The majority of those hires were in IT and Marketing. There are currently 40 openings in the San Francisco office.
The property is owned by Arden Realty, which is represented by Bart O’Connor and Mike Sample of Cornish & Carey Commercial Newmark Knight Frank. Esurance is represented by John Faller of Faller Real Estate.
Since being acquired by Allstate in October 2011, Esurance has nearly doubled in size to 3,000 staffers in 15 offices nationwide. Property/casualty policies are available now in 39 states, with options including car, motorcycle and renters coverage.
Northbrook, Ill.-based Allstate bought Esurance Inc. and Answer Financial, an affiliated company, from White Mountains Insurance Group, a Bermuda-based holding company, for $1 billion. San Francisco-based Gary Tolman, Esurance’s longtime CEO, is still in charge of the company.
J.K. Dineen covers real estate for the San Francisco Business Times.