Salesforce plans: More than 200,000 square feet of Tableau Software office space in the Seattle area are being placed up for sublease by Salesforce.
After announcing in January that it would do so as part of other cost-cutting measures, Salesforce made the decision.
The Fremont neighborhood’s Data 1 Building, which Tableau opened in 2018, is being subleased by Salesforce. A year later, Salesforce paid $15.7 billion to purchase the Seattle-based startup that specialized in data visualization.
Across Lake Washington, at Tableau’s Kirkland Urban headquarters, Salesforce is also subleasing space.
A Salesforce spokeswoman said in a statement that “Tableau is a critical and thriving part of our business and we remain fully committed to our Seattle-based home and employees.” They will always have access to a bustling work environment where they may get in touch with neighbors and coworkers.
In Fremont, Tableau also has its NorthEdge headquarters. Regarding whether or not that area is being subleased, Salesforce declined to comment.
This week, the news was covered by the Daily Journal of Commerce and Puget Sound Business Journal.
Due to hybrid work rules and recent layoffs in the business, several tech companies are attempting to reduce their workforces.
According to a Kidder Mathews analysis, sublease rates are still high in the Seattle commercial real estate market, at 18%, up from 16% in the fourth quarter.
According to the research, “the regional office market is clearly struggling and highly volatile at this time, particularly in Seattle.” Future office demand is still a significant unknown, looking ahead.
In addition to reducing its employees by 10%, Salesforce has downsized its headquarters in San Francisco by more than 1 million square feet.
Another Salesforce subsidiary, Slack, announced in February that it was giving up its own headquarters and relocating to Salesforce Tower.
Following the purchase of Tableau, Salesforce CEO Marc Benioff declared Seattle to be the company’s “HQ2,” placing his bet on the area as a source of future employment and growth. Before being acquired in 2020, Tableau had expanded to 4,200 workers worldwide, with nearly half of them based in the Seattle area.
Many top leaders and long-tenured workers of Tableau were affected by the January layoffs.
Former CEO Mark Nelson left his position in December after serving for two years.
According to Bloomberg, the majority of the Tableau executives that were listed on its leadership site when the transaction was announced have departed the business.
A handful of current and former Tableau workers convened earlier this year to discuss the company’s 19-year history at a brewery close to its Fremont offices. The “Irish wake” attendees heard a common sentiment that Tableau’s distinctive personality is fading away inside the customer relationship juggernaut.
Salesforce has committed to keeping Tableau’s technology in development.
Revenue for Tableau last year was $2.1 billion, an increase of 9% from 2021. Microsoft and other competitors are still a threat to the corporation in the business intelligence software market.
About 4,000 workers, including Tableau personnel, were employed by Salesforce in the Seattle area prior to the most recent layoffs. An updated headcount was not provided by the company.
Salesforce has a location in the heart of Bellevue, Washington.
