Here’s what happened in the SF Commercial and Residential Real Estate Market since 3/23:
According to the S&P/Case-Shiller Home Price Index, single-family home values in the San Francisco MSA 16.9% below a May 2006 peak. Condo values in the San Francisco market are 5.1% of their December 2005 peak.
The Emerald Fund is breaking ground at 101 Polk cross street Hayes for 162 Apartments.
TMG’s Tower at First and Mission will break ground soon and will be comprised of 1.35…Million sf of office and commercial space and also 650,000 sf of residential units. More to come.
The church at 1601 Larkin is becoming 27 condos.
An interesting fact that everyone picked up from the wire is a JLL survey which shows that leases of large office space plates over 100,000 sf is becoming more common e.g. there were 13 of those in 2012, seven in 2013. To us it is an indication that more Silicon Valley companies are moving to SF because such floor plates were never a rarity in the valley but they have been rarities in SF until recently.
Trulia is going to be the Anchor of 535 Mission street and lease 100.000 sf. The tower is scheduled to be completed in October. The tower’s cost is $210M or $700 per sf. Note that several older buildings are changing hands over replacement costs…
The retail space at 2201 Market Street was supposed to be Planning rejected the site of Starbucks but the bid. It is now the site of a 9 condo bulding+commercial.
La Parrilla Grill at Folsom and 24th will also become condos+commercial. More to come.
More rental units at 350 8th street (about 400 units+ commercial).
An RFP was issued for a 550 foot tower with retail on Block 5 of The Transbay (between Main, Beale and Howard). The RFP stipulates that the tower cannot be residential…”
2000-2070 Bryant Street in the Mission and 2815 18th and 611 Florida will become 300 apartment units.
Salesforce will lease the first 30 floors of 415 Mission street+ Penthouse. The building will be named after the company.
CBRE indicates a few interesting facts: the present office square footage universe in SF is 75 M sf out of which about 48 sf is Class A. Also, in 2014 78% of 1.8M sf of new office space is already pre-leased and in 2015 almost 60% of an estimated 1.9 M sf is pre-leased mostly to tech companies. Consequently, the supply of new construction is not meeting demand…$60 per sf per year for prime office space may soon be a bargain in SF.
Look for KB new 500 home developments in Fremont.
340 Bryant street is being marketed as 60,000sf for creative office space.
Our colleague at Curbed reports that 13 residential building will be erected over the Transbay Redevelopment Area and Rincon Hill. Thirteen new residential buildings will soon tower over both the Transbay Redevelopment Area and Rincon Hill. Curbed has once again done an amazing job at mapping them. Enjoy the link:
Residential Buildings in Transbay Area
Microsoft is moving to 50,000 sf at 555 California St. out $62 per sf.
Hotel Vitale with 200 rooms sold for $130 million or 650K per room. In comparison, the Ritz Carlton sold for $476K a room this summer. Finally, this sale price is also a record because hotel Vitale does not own the land and is leasing it from the City. If you take this fact into account, the capitalized value of the land puts the price per room even higher than 650K and closer to 800K. We have the feeling the price of Martinis is going to go up at the Americano…
JLL a very trusted source of real estate stats reports that for Q1 SF office market vacancy was 11.3% almost same as the previous quarter. Positive absorption was 160,000 sf.
To recap large leases in Q1 were:
Dropbox: 118,000 sf at345 Brannan St. + 180,000 sf at 333 Brannan + 110,664 sf at 185 Berry St. or 408,664 sf total.
Twitter: 206 sf at 1 Tenth St.
Practice Fusion 101,825 sf at 650 Townsend St.
B of A renewed its lease at 555 California for 261,150 sf.
Great link from our colleagues at Curved on the best public parks in SF:
Best public parks in SF
1875 Mission is going to be 38 condos. More to come.
388 Fulton in Hayes Valley is going to be 69 condos. More to come.
Look at the list of non-profits that have signed leases in Oakland. We know many law firms have moved to Oakland. Our prediction is that more Tech firms will follow, along with Art Galleries. Oakland will be Brooklyn. You read it here first:
- Self Aware Games (Big Fish Games) signed a 20,755 SF lease (they are expanding and relocating within Uptown to 1999 Harrison St.
- GreatSchools signed a 14,286 SF lease at 1999 Harrison. This non-profit relocated from San Francisco.
- Oakland School for the Arts signed a lease at the historic Sweet’s Ballroom at 1933 Broadway for 12,000 SF and will use the space as a performance center featuring young artists in their theater and music productions and other special programs.
- Union of Concerned Scientists signed a lease at 500 12th Street for 6,500 SF; this non-profit migrated from Berkeley.
- Spot Labs Inc., providers of the NV cloud platform, signed a lease at 2030 Franklin for 6,000 SF; they migrated from Emeryville.
- Yaron & Associates, a law firm, signed a 6,000 SF lease at 1300 Clay Street; they migrated from San Francisco.
- New Leaders, Inc., trainer of school leaders, signed a lease at 505 14th Street for 5,000 SF; this non-profit migrated from San Francisco.
- State Farm, an insurance agency, signed a lease at 1901 Harrison for 4,300 SF.
- Chloe and Isabel, a lifestyle brand, signed a lease at 360 17th for 3,000 SF; they also migrated from San Francisco.
- Center on Race, Poverty & the Environment signed a 2,330 SF lease at 1999 Harrison, this non-profit will be relocating from San Francisco on April 30th.
- Bill Baren Coaching signed a lease at 1440 Broadway for 2,000 SF; they migrated from San Francisco.
- The Port Bar (Sean Sullivan) signed a lease at 2021 Broadway for 2,000 SF.
- Tierra Mia Coffee signed a lease for ground floor space at the I Magnin Building for 2,000 SF.
- The Octopus Literacy Salon signed a lease at 2100 Webster for 1,600 SF.
- Yummee Ice Cream & Pastries signed a lease at 2131 Broadway.
- Embrace Networks signed a lease at 1440 Broadway for 1,500 SF; this non-profit migrated from San Francisco.
- Maki Waki Sushi signed a lease at Plaza 360 22nd Street for 1,400 SF.
- Manifesta, a new organic hair salon, signed a 1,300 SF lease at 8831 Broadway.
- AppSmyth, a new tech start-up, signed a 1,000 SF lease at 475 14th Street.
- E.M. Wolfman General Interest Small Book Store signed a lease at 410 13th for 750 SF.
- Accidentally Extraordinary, a new independent headphone brand, signed an approximate 150 SF lease on Webster Street.