Decagon Eyes Major Office Lease in SF Following $250M Raise

AI Startup Decagon Targets 70,000 SF Lease at 680 Folsom

San Francisco-based AI startup Decagon is reportedly in talks to lease two full floors—approximately 70,000 square feet—at 680 Folsom Street, following a $250 million Series D funding round that tripled the company’s valuation to $4.5 billion.

The fast-growing company has been exploring new office options in San Francisco for several months, with expansion tied to its rapidly scaling team. Decagon, which offers AI-powered customer service technology, plans to add at least 100 employees to its workforce by the end of 2025, according to earlier reports.

A Boost for Downtown Leasing Activity

The building’s owner, Boston Properties (BXP), shared on its Q4 earnings call that it is currently negotiating 132,000 square feet of leases across 680 Folsom and nearby 50 Hawthorne Street. Decagon’s deal would represent more than half of that activity.

While not yet finalized, Decagon’s lease would be a significant win for BXP as it works to backfill space in two key assets totaling over 520,000 square feet. Combined occupancy at 680 Folsom and 50 Hawthorne rose to 65.8% in Q4—up from 59.2% in the previous quarter.

Other recent activity in the building includes Swinerton Construction, which has leased roughly 34,000 square feet on a separate floor.

What It Signals

The potential Decagon lease is another sign of life for San Francisco’s AI-fueled office recovery, particularly in high-end, amenity-rich buildings that can support the growth needs of venture-backed companies.

The company is currently based at 100 1st Street, though its current square footage has not been publicly disclosed. If the new lease is completed, Decagon would become one of the larger recent tech tenants to commit to significant space in the city.

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