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Apple makes room for 500 employees in new San Francisco office

Apple is reportedly preparing to open its first major San Francisco office later this year, in what may be a concession to the competitive recruitment environment in Silicon Valley, a report said on Thursday.

The company's rented space at 235 Second Street is presently under construction, which means workers could be ready to move in by late summer, real estate experts told Reuters. The company will occupy about 76,000 square feet across two floors, roughly enough for 500 people, though more could potentially crowd into the building out of sheer demand.

Apple technically already has offices in San Francisco, mostly through acquisitions of companies like Beats and Topsy. While Topsy's space is only big enough for about 75 people though, other Apple workers have reportedly been stopping by to work from the city instead of having to commute to Cupertino. Indeed, accommodating the existing Apple workforce may be a potential reason for needing the Second Street space.

However, the company may also be facing a tougher time trying to lure in other tech workers in San Francisco, as much of its workforce there must still make long daily commutes — at least 90 minutes one-way — which may be unappealing to new hires when other potential employers like Google offer a better chance at staying in the city.

The company is using charter buses to soften the blow, but it was one of the last major Silicon Valley firms to start running them, and that may still be unappealing versus shorter commutes within the San Francisco area.

Another reason for wanting the Second Street office may be that Apple is running out of room in Cupertino, where it's already holding about 70 percent of the city's office space. The company is working on a new and bigger campus there, but it won't be ready until at least January 2017.

A deal for new San Francisco office was first uncovered in July last year.