"It is clearly something we have been planning for," Mayor Ed Lee said at a news conference Friday morning at 50 Fremont St., the site of Salesforce's current headquarters.
The cloud computing company also announced that it expects to hire up to 1,000 new employees in San Francisco in the next year. Salesforce currently employees about 4,000 people in The City, according to the company.
Rep. Nancy Pelosi, D-San Francisco, joined Lee and others at Friday's announcement. She said Salesforce's deal shows that the new Transbay Transit Center where the building will be located "will be a dynamic force in the community."
Salesforce is expected to take 714,000 square feet in the tower, according to the San Francisco Business Times
. The 1,070 foot tall building will be renamed Salesforce Tower, the paper reported.
Salesforce on Friday announced that it will lease half of the Transbay Tower in South of Market once its completed, which is expected in 2017.