SAN FRANCISCO (March 8, 2017) — Blue Shield of California today announced it will relocate its headquarters to Oakland in a move designed to reduce administrative costs, provide a new, state-of-the-art facility for approximately 1,200 employees and strengthen the company’s position for long-term, sustainable growth. The nonprofit health plan will maintain a substantial presence in San Francisco, where Blue Shield of California Foundation will remain headquartered.
Blue Shield’s executives and most of its San Francisco-based employees will move from their office at 50 Beale St. to 601 City Center in Oakland, in mid-2019. 601 City Center is being developed by Shorenstein Realty Services, L.P. on behalf of a joint venture between a Shorenstein investment fund and MetLife. Construction on the 24-story building begins in 2017 and will be ready for occupancy in the third quarter of 2019.
Blue Shield will continue to support and engage with San Francisco social, civic and community organizations, and will open a new office in the city with a conference center, event space and sales department; the Foundation will remain headquartered in San Francisco in a to-be-determined location.
Aligning with Blue Shield, the Foundation is focused on improving the lives of all Californians, particularly the underserved, by making health care accessible, effective and affordable, and by ending domestic violence. The Foundation is an independent organization funded entirely by contributions from Blue Shield. Through grantmaking to nonprofit organizations, research and convening, the Foundation is advancing health and safety for the most vulnerable Californians.
“Blue Shield has called San Francisco its home since the health plan was founded 78 years ago. We are proud of our relationship with San Francisco, dedicated to its communities and committed to keeping the Foundation headquartered in the city,” said Paul Markovich, president and CEO of Blue Shield. “However, Blue Shield’s mission challenges us to evaluate our resources in a way that furthers access to affordable, quality health care.
“After extensive evaluation, we believe the move to Oakland will lower our administrative costs, allow us to invest in our people, services and products and better position us to scale our business as we grow to serve more members across the state. It also minimizes the impact of a move on our Bay Area workforce, as more than two-thirds of the employees who work in our San Francisco office live in the East Bay.”
Blue Shield estimates the lease in Oakland could save the company at least $26 million over the term of the lease when compared to San Francisco. With 6,800 employees statewide, Blue Shield maintains 18 offices across California.
Blue Shield’s lease at 601 City Center is for approximately 200,000 square feet. Blue Shield engaged the leasing firm of Jones Lang LaSalle, represented by Tom Maloney. The Landlord was represented by Tom McDonnell of Shorenstein Realty Services, L.P. and John Dolby and Dane Hooks of Cushman & Wakefield.
Background on Blue Shield of California
Blue Shield of California, an independent member of the Blue Cross Blue Shield Association, is a nonprofit health plan with 4 million members, 6,800 employees and more than $17 billion in annual revenue. Founded in 1939 and headquartered in San Francisco, Blue Shield of California and its affiliates provide health, dental, vision, Medicaid and Medicare health care service plans in California. The company’s mission is to ensure all Californians have access to high-quality care at an affordable price. Blue Shield has contributed more than $450 million to Blue Shield of California Foundation since 2002. Contact your local agent or broker about Blue Shield of California products and services, or visit www.blueshieldca.com.
About 601 City Center
601 City Center is a planned office tower entitled for approximately 600,000 square feet.
It is designed to achieve LEED® Gold certification. The 24-story office tower will provide a dramatic new addition to the Oakland skyline while offering phenomenal 360-degree views of San Francisco, the Oakland Hills, UC Berkeley and surrounding areas.
601 City Center is located on 601 12th Street in Oakland, California’s bustling City Center business district. City Center offers a wide variety of restaurants and retail shops. People-oriented public spaces feature fountains, sculptures, entertainment, abundant landscaping, festive lighting and al fresco dining. City Center’s central location is unsurpassed in ease of access, with direct access to the BART system, major freeways, and Oakland International Airport, Oakland City Center is an ideal location for businesses and their employees. For more information, visit 601citycenter.com