Salesforce abandons San Francisco plans

Posted by IronPlanet on Feb 29, 2012 4:47:00 AM

Budding tech company Salesforce has pulled out of a new office planned for downtown San Francisco, in a move that has left city officials scratching their heads.

The San Francisco Gate reports that the company has abandoned its plans for building a major campus in the city, a construction job that would have lasted until 2015. The company spent $278 million for land in the middle of the city and was close to receiving final approval for the project when the company suddenly decided against it.

Salesforce claims that the office wouldn't be built fast enough to accommodate the company's projected growth. However, some have suggested that it could be due to shrinking profits for the company, as they recently reported a significant loss for the fourth quarter of 2011.

As of now, it's unclear whether the company will keep the land and work on their design more or sell the land off to another company.

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Topics: Construction, Industry Headlines