Here’s what happened in the SF Bay Area Residential and Commercial Real Estate Market since 3/21:
When Transbay opens the temporary Transbay Terminal between Howard, Beale, Folsom and Main will become the Transbay Park with a 165 foot tower on Beale and Main and another 450 foot tower facing Howard. More details as to whether condos or rentals to come.
rendering credit: Transbay Center/Pelli Clarke architects
539 Bryant a 60,000 sq. ft. office building sold for $46M or $768 per sq. ft.
Google leased 166,000 sq. ft. at Rincon Center ll. Terms of the deal are not public as of this writing. Google now leases:
- 386,000 square feet in Hills Plaza at 345 Spear St.
- 250,000 square feet in One Market St.
- 88,000 square feet in 188 Embarcadero
A Chinese developer purchased a 50 percent interest in a 400-foot tower to be completed at 160 Folsom. The price paid for this interest is not known. What is public info from permits filed is that construction costs is approximatively $200M and it will be 391 condos.
Amazon leased 214,000 square feet of office space in Palo Alto terms of the deal are not known. However it is rumored that Amazon is looking for the same square footage in SF… Class A office space in Palo Alto leases for about $70 per sq. ft. per year.
The San Francisco court of Appeal struck down a 2015 city law that allows payments of up to $50,000 in relocation assistance from landlords to tenants that have been evicted when a rental property goes off the market (Ellis Act).
220 Battery Street will be 2 townhomes with terraces about 2500 sq. ft. each.
Affirm leased 86,000 sq. ft. at 650 California and We Work leased about 61,000 sq. ft. Terms are not known as of this writing. Otto (Uber owned) truck company will lease 130,000 sq. ft. at Pier 70 (Dogpatch). Adobe leased 109,000 sq. ft. at 100 Hooper, Accenture leased 100,000 sq. ft. at in the Salesforce Tower at 415 Mission and App Dynamics leased 68,000 sq.ft. at 303 2nd. Class A office leases average about $77 per sq. ft. per year according to CBRE. Oakland in comparaison now averages $57. Palo Alto office spaces are in the $70s and going up.
The demand for condos in SF is strong despite new construction. In other words, new construction does not satisfy demand and well priced condos whether new or resale continue to sell well. SF now has about 3 months of remaining inventory (the time it would take to sell all the inventory) which is low inventory. A balanced market has 6 months of remaining inventory. Any inventory metric under 6 months=low inventory or a Seller’s market. Note to all our residential clients. Contact our broker to list your condos and homes… New Construction sells for $1000 per sq. ft. and up and resale approaches or equals $1,000 depending on location, views, condition of unit etc. A condo in SF leases for about $58 per sq. ft. per year.
The Transbay Transit Center cost year to date is about $2.2B and it is projected to initially lose about $20M a year hence the need to maximize the 100,000 sq. ft. of retail space. SF has signed an agreement with a Retail Management Company. The Center is now a bus terminal and requires additional funding to connect to Caltrain and a High Speed Train.
The issue of soil contamination following the transfer of Navy Land to SF continues. Buyers at the Shipyard backed out of purchase contracts for their condos citing health reasons after it was determined that the contractor the Navy used Tetra faked soil tests in the Bayview Hunters Point Area where the Shipyard project is located and which was a former Naval Base. Another testing will take place by another company shortly and we’ll find out whether the soil is contaminated or not.
211 Main St. sold for $313 million or about $750 per square foot for a 417,200 sq. ft. office building.
Bay Area traffic congestion is now officially the 4th worst in the World! The widely disseminated survey also indicates that 83 percent of voters say Bay Area elected officials need to treat traffic problems as an emergency…
44 Montgomery St., a 631,225-sq. ft. office building sold for $473M or $750 per sq. ft.
The 72,000 sq. ft. office building at 901 Battery sold for $700 per square foot or $50M.
The 417,266 sq. ft. office building at 211 Main Street office sold for $312.9 million or $750 per sq ft.
30 Van Ness sold by SF is finally closing at $70M for about mostly 180,000 sq. ft of office space which is about $388 per sq. ft….
The 34 condos at 1650 Broadway are all sold at an average price of $1600 per sq. ft.
The garage at 550 O’Farrel will be 115 residential units and no word as to whether condo or rentals.
75 Howard now a garage but approved for 133 condos sold for $95 million or about $714,000 per approved unit.
As everyone knows Central Soma which is the area between Market, 2nd, Townsend and 6th is upzoned and approval is expected in 2018. Soma Square along with 394 Harrison St and 1335 Folsom St. will most likeley be upzoned and end up becoming a mega residential project.
DM Development 815 Tennessee in Dogwatch will soon start selling 69 condos ranging from 1/1 to 3/3 and starting at $700k. Marketing of these units is in the hands of the most capable Alan Mark and the Mark Company.
The 584 units rental building planned on Market including 1601 Market now housing the Civic Center Hotel across from 1 Franklin and also including the union buildings at 1601 Market and 1621 Market along with 1629-1637 Market is closer to reality and undergoing EIR.
600 residential units over retail is also close to reality at 725 Harrison across from Whole Foods. This is an enormous 907,000 square feet of office space, 10,000 square feet of retail, 54,000 square feet of flex space and 10,000 sq. ft. of open space along Harrison.